Ivan Ivanov: EWRC's decision on electricity and heat prices is anti-inflationary, balanced and ensures price predictability

EWRC's decision on electricity and heat prices is anti-inflationary, balanced and ensures price predictability. It also provides financial stability to energy companies. Thus, the chairman of the Commission for Energy and Water Regulation (EWRC) Ivan Ivanov determined in front of journalists today's decision to increase the prices of electricity and heat energy for domestic consumers for the regulatory period from July 1, 2023 to June 30, 2024. As before he also indicated the reason for the slightly higher price jump in the price of electricity - the need to include a larger quota for the regulated electricity market from the Maritsa East 2 TPP.

"Today, the Commission for Energy and Water Regulation adopted a decision by which the average price of electricity for the regulated market, that is, for household consumers, is established by 4.37% higher. For thermal energy, that is, for steam and hot water, there is practically no change for the next heating period and, in fact, for the entire next 12-month period."

Ivanov also specified the principles by which the commissioners were guided when making the final decision.

“The Commission was guided by three main principles in reaching this decision. First of all, it is the principle of balanced acceptance of all arguments. The decision, as we have adopted it, on the one hand, ensures the financial stability of the energy companies, because otherwise it would threaten not only the Bulgarian energy industry, but also the industry, and also the end users, if there are companies that fall into financial trouble bankruptcy.

On the other hand, the Commission protects the interests of consumers, because from the applications that demanded a higher price increase, we have removed all the factors that could be removed," the EWRC chairman pointed out. He also explained why the increase was slightly higher than the initially forecast 3.6%.

"The increase, which is 4.37% (of the price of electricity for the regulated market) was commented on before. It is mainly based on the fact that, in order to be financially sustainable, the largest power plant in the Mariska Basin - TPP "Maritsa East 2", it is foreseen by an order issued by the Minister of Energy that 2.2 TWh of electricity produced by the plant to be included in a regulated market'.

"I want to say two more principles that guided us: when we determine an increase of 4.37%, it should be taken into account that this decision is anti-inflationary, because the increase is several times lower than the inflation index in the country, which all they know and feel. In this way, our decision works in suppressing inflation in the country. Furthermore, the decision shows that Bulgarian consumers can be confident that they will have stable and predictable prices for the entire next year - from July 1, 2023 to June 30, 2024. This is important for every household, as it is also important for the Bulgarian business, for that part of it that is at regulated prices", concluded the EWRC chairman.