Business: The high price of electricity and the forecast of "Bulgargaz" are a death sentence for the Bulgarian economy

Bulgarian business will suffer a devastating blow in just a few days. The price at which industries and public consumers will pay for their natural gas in August will be BGN 286.84/MWh! Instead of four times cheaper gas, we get twice as expensive, compared to April. Businesses cannot generate enough revenue to pay their bills. The combination of this price with electricity prices and the chaos with the compensatory mechanism there is tantamount to a death sentence for the Bulgarian economy. I write this in my letter from the Association of Bulgarian Employers' Organizations. In just one day, this is the second letter that business has sent to the government because of the energy crisis and disputes that have engulfed the country.

The overpayment over the April price is BGN 42/MWh in July and will be BGN 142/MWh in August! For July, Bulgarian consumers overpaid BGN 90 million, and for August the additional bill was BGN 300 million! And these are the costs, without including the injection of gas in "Chiren", which we will pay extra in the cold months!

Meanwhile, businesses are expected to work, produce, pay wages, pay taxes to the treasury.

We insist until the end of the working week:

To fulfill the promise made to us on May 16 to offset the price of natural gas above April levels.

To urgently resume supplies of natural gas from OOO Gazprom Export, according to the existing contract. Only in this way will the operation of the business, the heat supply of the citizens and the filling of the gas storage "Chiren" be guaranteed. At the moment, this is the only way to safely welcome the autumn-winter season and master the price shock.

To announce the estimated price for September 2022.

To be notified officially whether and for how long natural gas supplies are guaranteed.

To be officially notified of what steps are being taken to ensure full gas supply from 1 January 2023. Is work being done to conclude long-term supply contracts at competitive prices?

To take quick and specific actions to ensure that the Russian side will not make claims against Bulgargaz EAD under the "take or pay" clause existing in the long-term contract between the two parties.

Taking these actions is urgent if we want the Bulgarian economy to survive and our homes to be warm," the AOBR concluded their letter.