The Bulgarian government has announced a 50% cut to solar feed-in tariffs, having only approved a new FiT in April. Effective July 1, chair of the State Commission for Energy and Water Regulation (DKEVR), Angel Semerdzhiev, told Parliament on Friday that the renewable energy surcharge was solely responsible for an increase in electricity rates.
“Our decision has not changed substantially. Only the renewable energy surcharge had to be changed because the National Electric Company (NEK) keeps suffering significant losses because of the increased production of renewable energy. The change only takes into account the current situation and not future periods,” said Semerdzhiev. According to Bulgarian press Novinite, electricity prices increased by 13%, rather than the anticipated 10% on July 1.
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“Regardless of the fact that electricity prices in Bulgaria are the lowest in the EU, each increase is met with sharp criticism on the part of consumers. This is why we insist on absolute transparency about the reasons behind the price hike,” Semerdzhiev concluded.
According to Reuters, the chair attested that “growth in installations has outpaced forecasts, applying pressure on the ageing power grid and electricity prices in the European Union's poorest country.”
The final decision on the new prices of electricity, heating and hot water is to be announced on Saturday by the energy watchdog.
Vladimir Dichev, head of the Association of Electricity Traders said in response, “The move is a catastrophe. It will block exports and lead to huge losses for both producers and traders.”