Bulgarian budget committee proposes 20% fee on revenue from sale of green energy

By bne IntelliNews November 28, 2013

Bulgaria's budget and finance parliamentary committee has included in the draft budget for next year a 20% fee on revenue from sale of renewable energy. The second reading vote on the draft will likely take place next week. The bill passed at first reading on Nov 14 with the votes of 116 lawmakers from the 240-seat parliament.

The fee was first proposed by the nationalist Ataka party, which is a silent partner of the ruling coalition of left-wing BSP and ethnic Turkish MRF. It is speculated that the rationale behind the fee is to partially reduce the incentives to produce green energy and to help the grid operator NEC clear some of its outstanding liabilities, much of which are a result of the mandatory purchase of green energy at preferential prices.

Renewable energy producers, cited by Capital daily, have said that the proposed fee is discriminatory and is in breach of Bulgarian and European legislation.

Construction of wind farms and photovoltaic parks has been rapid in recent years, as state subsidies in the form of guaranteed sale of electricity at artificially high prices attracted significant capital in the sector.

The other side of the coin has been the end-consumer price of electricity. In the beginning of 2013, protests over high electricity bills toppled the government of CEDB (July 2009 - February 2013). Accordingly, one of the first things the cabinet of PM Plamen Oresharski did after taking power in late May was to cut the price of electricity by an average of 4.3%. 

Related Articles

EU asks CEE to comment on Russian gas promises

The European Commission has invited comments from Central & Eastern European states on proposals put forward by Russian gas giant Gazprom to meet competition concerns. Visegrad and the Baltic ... more

EBRD says 2016 net profit was around €1bn

The European Bank for Reconstruction and Development (EBRD) said it made a net profit of around €1bn in 2016, up by a quarter from the €802mn it made in ... more

New Bulgarian government reports irregularities in defence contracts

A check on public procurement under Bulgaria’s previous centre-right government has revealed dozens of violations in the defence ministry, caretaker Prime Minister Ognyan Gerdzhikov said on ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss