Despite our actively expressed position against the planned electricity price increase from 01.07.2015 - between 13% and 20% for the majority of enterprises in Bulgaria and our insistence that European policies and best practices be introduced in the "Energy" sector, at the moment we do not receive reasoned answers to the questions we have asked, including regarding:
- the real reasons that led to accumulated imbalances in the sector;
- is our imposed model for subsidizing RES, high-efficiency cogeneration and long-term power purchase agreements (PPAs) a state aid;
- why the amount of the fixed (respectively, regulated by KEVR) part of the final price of electricity in Bulgaria is among the highest in Europe (only in Denmark it is higher, and compared to the others - between 2 and 8 times higher);
- how the long-term electricity purchase contracts were signed, respectively, re-signed - the growth of "non-reimbursable costs" supplements is absurd - 188,8% (from BGN 3,38/MWh to BGN 9,76/MWh). It is not clear why the amount of "non-reimbursable costs" is increasing - despite the claims of renegotiated conditions under DDEII;
- are the received preferences for renewable energy sources legitimate - why is the increase in "green energy" supplements of 43,4% (from BGN 11,1/MWh to BGN 15/MWh), after it is claimed by KEVR that measures have been taken to review the preferential prices and the rate of return in the sector;
- is the cogeneration production highly efficient - how is the increase in "highly efficient production" supplements by 135,5% justified (from BGN 3,83/MWh to BGN 9,02/MWh);
- what justifies the imposed values of new components included in the price part "Obligations to society" - BGN 5,51/MWh. - why KEVR seeks to compensate all deficits in NEK within one regulatory period;
- why in a market economy an alien part of the social policy is transferred to the back of the enterprises and the policy of cross-subsidization of household subscribers at the expense of business users continues, as in the direct comparison of price levels (in all European countries the industry pays between 2.5 and 4 times lower prices) - it is a fact that on the regulated market Kozloduy NPP participates with energy prices of BGN 16,97/MWh. and BGN 30/MWh, which compensates on the free market with minimum auction prices of BGN 72,80/MWh. and BGN 73,20/MWh. for the price period July 2015 - June 2016., as well as through indirect methods, incl. by purchasing the electricity produced by heating companies at a significantly higher than market price, as well as subsidized heat supply;
- why for small and medium-sized enterprises there is no signal of concern regarding the impact of increasing electricity prices;
- where is the assessment of the impact on the economy from the increase in the price of electricity for commercial consumption;
- why does the obviously incompetent management of state-owned companies in the sector continue - robbed through inefficient but highly paid labor (average monthly subsistence - salary and insurance for one person - over BGN 3500), through abuses in the supply of services, materials, DMA, through lack of interest in optimization of production processes - the reserves in this respect alone amount to over BGN 250 million per year;
- why the export of electricity through interested private traders is exempt from additional burdens, and the export of electricity through Bulgarian production, produced and creating additional direct and indirect income in Bulgaria is burdened with such burdens - what are the priorities for Bulgaria - export of cheap electricity for 770 million BGN or export of production for over BGN 43 billion;
- why the interests of an elite minority of society are placed above the interests of the rest of the economic entities in Bulgaria - directly, and indirectly - through the employed workers and employees, as well as all internal consumers and taxpayers - practically the vast part of our society.
In fact, instead of clear, reasoned and legally justified answers, we receive a demonstrative refusal of dialogue and reluctance to implement any reforms in the sector.
We insist that an in-depth analytical discussion be continued until the end of the year and that the questions raised by us be answered satisfactorily, and that, depending on the results, vital reforms be undertaken.
That is why we, all employer organizations in Bulgaria, unanimously and categorically state that we no longer wish to pay for theft, waste and incompetence in the Bulgarian energy industry!
We do not accept an increase in electricity prices for enterprises!
With ill-measured actions, the country is being pushed towards large-scale macroeconomic problems, including a significant decline in economic activity and a sharp rise in unemployment even in the short term.
Consider how, in the presence of overproduction in the sector - a minimum load in the system of 2MW and installed capacity of 656MW - there is still a demand for an increase in electricity prices!
We declare that our protest actions will continue with a mass stoppage of production for 1 hour starting on June 26th!
INDUSTRIAL CAPITAL ASSOCIATION IN BULGARIA
BULGARIAN CHAMBER OF COMMERCE
BULGARIAN CHAMBER OF COMMERCE AND INDUSTRY
CONFEDERATION OF THE EMPLOYERS AND INDUSTRIALISTS IN BULGARIA
http://www.turbulence.tech