Electricity price in Bulgaria to rise by around 4% as of July 2013.

By bne IntelliNews October 31, 2012
Electricity price in Bulgaria will increase by 3-4% as of July 2013 due to green energy surcharge, Angel Semerdjiev, head of the state energy commission, said, as quoted by BTA. The regulator raised the electricity price by 13% in July 2012, which caused an immediate shift in inflation to 3.1% in July from 1.6% in the previous month. Back then Semerdjiev warned that even though the green energy component in the price of electricity was raised from BGN 3.72 to BGN 11.1 per megawatt-hour, the increase may not be sufficient to cover all costs related to purchasing electricity from renewable energy sources. Semerdjiev added that the grid access price that was introduced in September would become permanent and would be decreased. To stimulate development of green energy projects, National Electric Company (NEK) is obliged to buy the whole output of energy from green sources at a preferential price. The costs for purchasing electricity therefore rise proportionally with the number of renewable energy plants connected to the grid. The higher electricity costs are to be paid by NEK and the electricity distributors, but the burden is eventually transferred to end-consumers. Therefore, the energy commission decided already in August that National Electric Company (NEK) would not connect new renewable energy plants to the power grid as there is no capacity for new photovoltaic parks after the maximum power from such installations was cut from 12,000 to 4000 MW - a quota that has already been reached after the signing of preliminary agreements.

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