Bulgarian Energy Minister Foresees Decrease in Electricity Prices

Bulgarian Energy Minister Temenuzhka Petkova is predicting a possible decrease in the prices of electricity due to the falling prices of natural gas.

In an interview for the Bulgarian National Television (BNT) on Friday, Petkova said that the expected decrease in the price of natural gas is slightly above 20 %.

The drop of prices would affect the thermal power stations working on gas. Thus the price of electricity TPPs are producing is likely to decrease as the price of gas is dropping.

The exact decrease of prices will become clear once the Energy and Water Regulatory Commission (KEVR) completes all the necessary analyses and calculations and comes out with a decision.

Petkova commented the work of the independent energy exchange which in her opinion has been functioning successfully for more than a month.

According to her, the price of electricity at the exchange does not differ from that at other exchanges in the region.

This is due to the drop in the demand for electricity which is resulting from the lack of consumption.

The energy minister explained that the price is determined by the supply and demand of electricity on the market.

She added that the process of full liberalization of the electricity market is forthcoming.

At present household consumers are paying prices which are regulated by KEVR, so the effect of the energy exchange can not really be felt.

Petkova reminded that liberalization had taken place in all member states of the EU and Bulgaria is the last one to experience it.

In her opinion, liberalisation will be of benefit to all interested parties – producers, traders and users.

The minister noted that users should not be afraid of the liberalisation, as the exchange will boost competition and bring normal prices.

She added that the government had concluded an agreement with the World Bank on the development of a model for full liberalization.

Liberalisation will bring market prices and provide consumers with the chance to choose their electricity provider.

Petkova was not able to estimate the price of electricity after liberalization but the trend in other countries is for slight increase.

This is usually followed by a decrease in the prices to levels lower than those experienced before liberalization.

She assured that vulnerable groups will continue to pay electricity at more favourable prices than other users.