Kaloyan Staykov: There is a lack of vision of how the market will work after the end of the public provider

There is a lack of a comprehensive vision of how the market will work once the public provider is gone and households have entered a fully liberalized market.

Kaloyan Staykov, the chief economist of the Energy Management Institute (EMI), commented this to BNR. Even before President Rumen Radev vetoed the amendments to the energy law, EMI sent a number of recommendations to the institutions and did not spare its criticism of the changes.

"The reform itself affects a huge part of the market and a huge number of consumers. These changes must be approached very carefully, so that there are no shocks in the market and in the households themselves," Stajkov pointed out.

The deadline laid down in the RSP was last October. Something had to be done, but not a formal change of legal texts, the expert said. According to him, politicians first postpone a given problem as quickly as possible, and when there is nowhere else to go, everything is done hastily with explanations that there is no time for analysis.

"And then, naturally, a lot of mistakes are made."

If you look at the amendments to the law since 2012, you might feel dizzy, commented Kaloyan Staykov in the program "Before Everyone".

No one knows what prices will look like in 18 months. Hypothetical conclusions look like the story of an unborn Petko, he expressed his opinion in connection with the presidential veto on amendments to the law and the Prime Minister's response.

The regulated prices are currently artificially low for all consumers, Stajkov emphasized. According to him, a social policy is needed for consumers who cannot meet the costs of their bills.

"This is what is missing from the changes - more clarity about the social mechanisms that can help households that cannot cover their energy costs. Even if there is a price increase, it does not mean that people will not be able to use lighting or will die of cold in the winter. In these 18 months, these additional mechanisms can be adopted so that this tension is calmed."

If a difference is made between energy and income poverty, more adequate measures can be taken to support households, the expert believes.

"This analysis is missing and the measures are again in the direction of some kind of social assistance. Since 2015, we have been talking about energy poverty and vulnerable consumers."