This Tuesday (07/05/2022) the changes to the State Budget Act were promulgated and entered into force. They envisage that all non-household consumer will pay a price of 250 BGN /MWh for electricity until the end of 2022. The difference between the monthly spot prices and 250 BGN /MWh will be covered by the fund Security of the electricity system (FSES).
The funds needed to cover the compensations for the business consumers will come from additional, targeted contributions deposited by the state-owned power producers- mainly NPP Kozloduy, TPP Maritsa East 2 and the National Electric Company. It is envisaged that the amount of the targeted contributions will be determined by the Council of Ministers based on proposal of the Minister of Energy, taking into account the full cost of the electricity produced and the necessary funds for the implementation of investments and repairs.
Other changes in the legal framework exempts electricity generated by RES for self-consumption, liquefied petroleum gas and natural gas from excise duty fee until June 30, 2025. The measure is intended to help businesses and consumers dealing with the significant spike in energy prices on a European and global scale. This measure will be notified to the European Commission. The amendments also introduce a reduced VAT rate of 9% for central heating and natural gas. This measure will apply until July 1, 2023.
