"Lukoil Neftohim Bulgaria" warned of potential problems in connection with the new bill to change the law on control over the implementation of restrictive measures against Russia.
The disruption of Russian oil imports could lead to an increase in fuel prices due to reduced availability and increased demand, which in turn could have a direct impact on the economy and the budget, affecting both individual households and businesses.
In an interview with the Trud News newspaper, Yavor Kuyumdzhiev, one of the prominent energy experts in our country and the former deputy energy minister. foresees the implications of the bill and makes clear that households will eventually face the free electricity market indirectly in 2024, highlighting an inconsistency with the previous parliament's decision.
Regulators claim that electricity will not increase in price or will increase in price a little, in contrast to this, expert opinions of energy specialists warn of price increases of up to 300%.
The former deputy energy minister emphasizes the danger that electricity prices could rise significantly due to the transition of energy distribution companies (EPCs) to the free market, and this will lead to the need to subsidize the price difference by the state, but this approach is associated with serious financial risks and inadmissible borrowing of funds that were not planned in the budget.
Mr. Yavor Kuyumdzhiev emphasizes the complexity of the new legislative changes and their impact on the energy market and the future costs of Bulgarian households. According to him, it turns out that the role of KEVR as a regulator of the electricity market is disappearing, since there will be no public supplier, as he emphasizes and the uncertainty surrounding the way KEVR will determine prices on the regulated market after the transition to the free market. The energy expert expresses doubts about what will happen after June 30, 2024 and how electricity prices will be determined for consumers, and placed in these conditions, Bulgarian households may find themselves unable to plan their electricity costs.
Mr. Yavor Kuyumdzhiev expresses concern about the state of the state gas company "Bulgargaz" and its declining market share. After the discovery of alternative gas supplies from various sources, regulatory changes are required, which forces gas companies to compete in the market and adapt to the new conditions. This also includes a change in the price dynamics of natural gas. Consequently, Bulgargaz faces the financial challenge of selling at a lower price than last year's, higher price at which it purchased raw material, with full storage facilities.
It notes that the energy market is decentralizing and more and more private companies are involved in the supply of gas and electricity, and warns that the abdication of the state from this market could be unfavorable to national interests.
These comments emphasize the importance of strategic management and planning in the energy sector, as well as the need to diversify energy sources and support innovation and sustainable energy solutions.
Knowing this, it is important to stay informed and prepare for the economic changes that are coming.
It may be necessary to carefully plan your expenses and adapt to the new economic reality. Let us be informed and responsible for our future.
Our energy independence is a key factor nowadays. We at SSR are available to support you with the best and innovative solutions!
Sources:
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Bulgarian 