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Electricity rates could increase by 10 per cent starting from July 2009

Tue, Mar 03 2009 18:15 CET 1901 Views
Electricity rates could increase by 10 per cent starting from July 2009

The sign on this poster reads: "Those who live in Simeonovo are regularly without electricity. When will CEZ Bulgaria finish its work?"
Photo: Nikolai Doichinov

Electricity providers in Bulgaria have proposed an average increase of 10 per cent for domestic and commercial users, beginning in July 1, Sega daily reported on March 3 2009.

Czech-owned CEZ, which services western and northern parts of the country, demanded that night electricity supplies to domestic subscribers between 10pm and 6am be increased by 22.5 per cent.

It that demand is met it would mean that one KWh, currently priced at 0.09 leva, would cost almost 0.13 leva, excluding VAT. Daily rates would jump by 11 per cent to a price of about 0.16 leva a KWh.

Lubos Pavlas, the company's CEO, said as quoted by Sega, that the reason for requesting such a drastic increase from the State Energy and Water Regulatory Commission (SEWRC) was that CEZ could not even cover the costs of its overnight supply. The night rate is currently low and people seem to find it cheaper to turn off their central heating radiators and turn on electrical heaters.

EVN, the Austrian provider servicing southeast Bulgaria, wanted one KWh to cost close to 0.17 leva during the day and almost 0.10 leva at night. In northeast Bulgaria the supplier is German operated E.ON. Even if the increase was approved, it would maintain the lowest prices in the country with 0.15 leva a KWh daily rate.

Sega daily commented that, if approved, this would be the second significant increase of electricity tariffs in the last two years. Inflation, in addition to the newly-sprung wind and solar electric power plants that the law requires to be bought up by any of the three providers, further complicates matters.

Economy and Energy Minister Petar Dimitrov responded to the call for a 10 per cent increase by saying that everything needed to be evaluated carefully, private broadcaster bTV reported on March 3 2009.

SEWRC has to consider all arguments for the increase, so at this stage it is too early to talk about a "reasonable per cent", Dimitrov said. "We are all experiencing difficulties," the minister said.

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