Overgaz: Energy compensations must be adequate and fair

Discrimination against natural gas users is against EU rules

Energy / Bulgaria
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Overgaz: Energy compensations must be adequate and fair

Source: needpix.com

With the update of the state budget, the parliament agreed to support the companies due to the increase in the price of electricity. The problem is that the aid is only for consumers of electricity, not all energy sources.

Such "selectivity" is contrary to the practice and policies of the European Union in general, as well as to the measures in connection with the crisis in the common energy market, which is further aggravated by what is happening in Ukraine. Nowhere in EU documents is there any indication that compensation should be given only to users of one of the many resources in the energy market. On the contrary, energy companies and their customers should be treated equally.

It is indisputable that at the moment the electricity market is benefiting, which puts everyone else (including natural gas users) in an unequal position. Such a discriminatory approach is in conflict with European regulations and with judicial practice on the admissibility of state aid.

However, that is not all. The state allowed favoritism to a single participant in the natural gas market. On 11.08.2022, by decision of the Council of Ministers, a loan was granted to "Bulgargaz" EAD, which in its essence is state aid, incompatible with the rules of competition and the common market. The created privileges will not improve the conditions of the natural gas market, both in the country and within the EU. With this decision of the Council of Ministers, natural gas users are not optimized or supported in any way, which is contrary to the guidelines of the European Commission.

Therefore, "Overgaz Networks" sent a letter to Prime Minister Galab Donev, Minister of Energy Rosen Hristov and Chairman of the Commission for Energy and Water Regulation Ivan Ivanov, demanding that the measures to compensate energy users be brought into line with the rules of the European Union. All market participants must be treated equally, subject to the principles of equality, and all natural gas users must be adequately and fairly compensated.

If the state's inaction on the problem of the lack of compensation for all natural gas users continues, the damage to market participants and to the state itself would be enormous. Any violation of competition on the market creates a risk of sanctions, recovery of illegally allocated funds in the form of state aid and coverage of damages suffered by all affected companies and citizens.

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