Bulgaria had a very dynamic energy market last year, with exports reaching up to 40% of the country’s power generation, but the companies in the sector require the Government to prolong the price compensation mechanism and to allow companies to sign long-term contracts.

”The key issue concerning the energy market and especially the electricity prices at that moment is to keep this compensation mechanism until the end of this year. There is a discussion if it’s possible for this mechanism to be kept by the middle of the year because there is a special European regulation but we think that the government and the Parliament should find a way to keep the mechanism in function till the end of the year because for every company is important to have a middle term perspective. It’s not possible to run and to manage your business without information for the future electricity prices”, according to Vasil Todorov, Secretary General of the Bulgarian Chamber of Commerce and Industry, at the conference “Regional Approach Sofia”, organized by Energynomics.

More than 80% of the Bulgarian electricity market consists of deals on the day-ahead market, but the large consumers require long-term contracts, and the industry expects the Bulgarian government to make some changes in the independent electricity exchange market to encourage companies to sign long-term contracts.

„We are a net exporter of electricity and in some days we export about 40% of the electricity production, which is a huge figure”, Todorov said, adding that the export income goes into a special electricity fund that is used to finance the mechanism for energy prices compensation.

Bulgaria has seen a 55% drop in gas consumption and Bulgarian business organizations are thinking of creating a similar mechanism for gas prices to give the companies a motivation to invest in gas installations.

The conference “Regional Approach Sofia” was organized by Energynomics with the support of our partners: Eaton Electric, Finder, Kawasaki Gas Turbine Europe.