Electricity prices in Bulgaria remain the highest in the region as August progresses, reports “Capital”. Despite the end of the summer and a decrease in heat waves, the “Day Ahead” market prices for August 26 have reached 322 leva/MWh. The average price for the month so far stands around 240 leva/MWh, with recent weekdays seeing prices consistently above 300 leva. This trend follows a similar pattern observed in July, where the average price was 267 leva per megawatt hour, according to Novinite.

The high prices, which are double those seen in May, are attributed to ongoing issues in Southeast Europe, including Bulgaria, Romania, Serbia, Greece, and Hungary. In contrast, electricity prices in the rest of Europe are significantly lower. Although the prolonged heat waves of summer, which had increased regional consumption, are no longer a factor, high prices persist. One suspected cause is the export of electricity to Ukraine, although this has yet to be confirmed officially.

In response to the high electricity costs, Bulgarian MPs have approved a compensation scheme for businesses. This scheme, which covered costs in 2022 and 2023 during the energy crisis caused by reduced gas supplies from Russia, will continue until the end of the year. It will cover all electricity costs exceeding 180 leva/MWh, funded by the “Security of the Electricity System” Fund, which is supported by income caps on electricity producers in Bulgaria.

Market analysts predict that high electricity prices will continue into the fall. Similar expectations apply to the natural gas market, which has risen by 12% in recent weeks and could affect the Greek market. Additionally, elevated electricity prices may increase demand for Bulgarian coal plants, as their energy becomes more competitive in the market.