Bulgarian government announces anti-crisis measures

Bulgaria’s Prime Minister Kiril Petkov, the Deputy Prime Minister and Minister of Finance Asen Vassilev and the Minister of Energy Alexander Nikolov met representatives of employers' organizations and trade unions on Monday. After the talks the announced the compensations for the businesses for May and June.

Those affected from the higher prices of the electricity are to get 80% of the increase over 100 EUR/MWh. The measures for natural gas prices envisage 100% compensation of the price increase in May.

Here are the measures proposed by the cabinet:

1. Short-term measures: Compensations for the month of May for the high electricity prices - 85% of the increase in the price of electricity over BGN 200 without a ceiling.

2. Short-term measures for natural gas prices: The government has provided the necessary quantities for both Bulgarian business and the public supplier. The price reached in May was 14.3% higher than in April. So the cabinet will apply the full amount of compensation from April + 100% of the price increase in May. That way the price for both Bulgarian citizens and businesses in May will remain unchanged compared to April.

3. Long-term measures through legislative proposals: Automation of the process of compensating Bulgarian businesses for high electricity prices - legal changes to finance the Electricity System Security Fund - payment of "excess profits" by companies in BEH, as well as contracts for difference with consumers who receive a guaranteed return on current contracts with the state. That way the business will receive the corresponding amounts on a monthly basis in case the market instability continues. If necessary and in case of continuing difficulties with the supply of natural gas, such measures will be considered to compensate for these costs, but from the state budget.