BEH will make a targeted contribution of BGN 650 million to FSES to compensate for electricity costs for non-domestic consumers
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The Council of Ministers approved a targeted contribution by "Bulgarian Energy Holding" EAD to the "Security of the Electricity System" Fund (FSES) in the amount of BGN 650 million. The indicative amount of the contribution, for which funds should be provided to BEH EAD by its subsidiaries - electricity producers, was calculated on the basis of reporting data for the month of September 2022 and forecast data for the month of October and November 2022.
The funds are intended to cover the costs of implementing the Program for compensating the costs of non-domestic end customers for electric energy and of the operators of the electric transmission and electric distribution networks for the purchase of the quantities of electric energy needed for technological costs for the period from July 1, 2022 until September 30, 2022
According to the adopted Law on Amendments and Supplements to the Law on the State Budget of the Republic of Bulgaria for 2022, FSES should compensate non-household final customers of electricity in the amount of 100% of the difference between the real average monthly exchange price for base load of the "Day Ahead" segment of the "Bulgarian Independent Energy Exchange" EAD, for the relevant month and the base price of BGN 250/MWh for the period from July 1 to December 31, 2022.
In order to carry out the provided compensations, the Law stipulates that public enterprises from the energy sector with 100% state participation in the capital make targeted contributions to the FSEU to cover costs under Art. 366, para. 1, item 4 of the Energy Act. The amount of contributions is determined by the Council of Ministers on the proposal of the Minister of Energy, taking into account the full cost of the electricity produced, the necessary funds for the implementation of investments and repairs without VAT, guaranteeing the long-term operation of the production facilities and ensuring an economically justified rate of return on capital.