“About BGN 940 million are provided as compensation for end consumers in Bulgaria, approximately 350 BGN million for DSOs and about 20 BGN million for gas. Up to 2 BGN billion is the buffer provided by the state budget.” the energy minister said. He pointed out that the compensation period is being extended until the end of the first quarter of 2022.
The compensation for December 2021 and January 2022 will be included in the invoices of the end customers on the free market, issued in February 2022. The compensation mechanism is based on the quantities of electricity consumed, with a fixed amount of support for the respective month of consumption:
– The fixed amount for compensation for December 2021 is 128.98 BGN per MWh;
– The fixed amount for compensation for January 2022 is 141.21 BGN per MWh.
The amount of compensation is calculated as 75% of the difference between the average monthly spot price of IBEX for the respective month of consumption and the base price of 185.59 BGN, but not more than 30% of the spot price for the month of consumption, which is valid for December. For January, February and March the compensation cap is fixed at 250 BGN/MWh.
What is new is that customers who receive 30% lower prices than spot price for December will not benefit from the aid. There is also a limit price set for January to ensure that consumers with significantly lower prices than the spot market will not be eligible for compensation.
With regard to network operators, it is envisaged that they will be fully compensated for the deficits accumulated in the period July – December 2021, caused by the higher electricity prices. By law, network operators purchase the energy needed to cover their technological losses entirely from the power exchange. At the same time, the Regulator sets their estimated market price, which for the current regulatory period is 131.27 BGN/MWh for the electricity distribution companies and 124.85 BGN/MWh for the TSO. These values are significantly below the actual spot prices, that is why those companies need compensations.