Minister Stankov: Household electricity bills will not increase with market liberalization

If we make the unfeasible reforms set out in the Energy Policy, it will lead to a deep digging into the pockets of Bulgarian citizens, which we will not allow, Energy Minister Zhecho Stankov told the Bulgarian National Radio (BNR).

According to him, the government has focused on the option of "renegotiating them in a way that does not harm our national interest, but in a way that preserves our loyalty to the EC".

"Working piecemeal over the past 4 years and making commitments that are difficult to implement have currently brought us to the position where a large part of the funds under the Recovery and Resilience Plan, if not all of them, are blocked and important reforms must be renegotiated as soon as possible. ... For the first time, Bulgaria will officially submit a request for amending the Recovery and Sustainability Plan," said the Minister of Energy.

Given the linking of the reforms in the Recovery and Sustainability Plan (RSP) to the liberalization of the electricity market for household consumers, Minister Stankov was categorical that electricity bills for households will not increase.

"Whether there will be liberalization or not, household electricity bills will not increase. In the Ministry of Energy, we have found an option with a protective mechanism to compensate household consumers through the Electricity System Security Fund," he said.

In this regard, he specified that the RSP is a project against reforms and commented on the idea of ​​removing two of the companies from the Bulgarian Energy Holding (BEH).

"There are several reforms that are related to removing two of the most profitable companies from the Bulgarian Energy Holding (BEH). This will lead to an early requirement of over 1.2 billion euros - funds from BEH's bond loans. ... The main desire of the European Commission has always been to ensure that there is no cross-subsidization, you understand - taking from richer companies and directing them to those that have problems with their finances. Taking the companies out of the holding is not a solution, we have found an option and are talking with the EC about how this can be guaranteed in another way, without having to take the companies out. The way is - with an internal guarantee that the funds from these two companies, including their dividends, will be directed through BEH directly to the state budget, and not remain inside and be directed to other companies, which affects our relations with the EC at the moment".

According to Zhecho Stankov, Bulgaria has not fulfilled the commitment to a 40% additional reduction in carbon emissions from coal-fired power plants.

"This puts the functioning of our energy sector at risk. ... In 2024, emissions decreased by only 35%, and this winter is colder and we have burned three times more coal, so it is not at all certain that there will be a minus in emissions, and there may even be an increase. Europe has never asked us for this. I do not know why my colleagues have taken it on as a commitment. This threatens the work not only of the thermal power plants, but also of the mines. The commitment was made separately for each power plant, my fight is to have it renegotiated not for each power plant, but at the national level".

For the last 7-8 months, Bulgargaz has not had the financial capacity to cover its obligations to Botas, the energy minister announced and specified that the contract is unprofitable for Bulgaria and options for its renegotiation are being sought.

"We are trying to load the pipe so as not to pay for something we do not use".

Minister Zhecho Stankov, commenting on the state of the ruling coalition, stated that it is stable.