Industrial companies are shutting down due to expensive electricity

Several industrial enterprises in the country have limited or stopped their production capacities today, among them are the Stara Zagora enterprises "Progress" and "Preskov", BNR reported. The reason is the high price of electricity. On the “Within the day” market of the Bulgarian Independent Energy Exchange / IBEX / the trading on Wednesday reached levels of BGN 405.91 per MWh, and the average price on the “market day ahead” was BGN 330 / MWh on the Bulgarian electricity exchange at deliveries for August 4.

The Association of Bulgarian Employers' Organizations (AOBR) also warned on Wednesday in an open letter to Prime Minister Stefan Yanev about the forthcoming closure of key industries.

As a result, on Wednesday afternoon, the Ministry of Energy announced that the state-owned TPP Mapitsa East 2 was filling the third unit of the plant with a production capacity of 210 MW. The department announced that the decision was taken on August 3, after a conversation with the management of the TPP. So far, only two units of the center have been operating - one to fulfill the quota of 1 million megawatts of electricity for the regulated market, and the second - for the second.

Following the announcement of the Ministry of Energy, the price of electricity calmed down slightly and the IBEX closed the "market day ahead" trade at a base energy price (1 - 24 hours) of BGN 258.31 per MWh and a quantity of 72,557.30 MWh with a delivery day on August 5. 2021, according to trade data.

However, the price remains high and companies from various sectors - especially foundries and companies in the food industry - continue to cease operations.

"For the second day, most of our companies have de facto stopped working. Practically, all foundries closed ", commented on BNT Rumen Radev, Deputy Chairman of BICA. He added that the companies within the organization remain on alert.

These are basic enterprises and stopping them for a day or two will not change things, but if this continues over time, the whole hierarchy of added value will begin to collapse, Radev explained. He called for an immediate hearing of the energy minister and the chairman of the BEH board.

The ceiling was BGN 400 on the afternoon of August 4 and at this price we cannot work, Radev is categorical.

At the moment, TPP Maritsa East 2 is operating at less than 50% of its capacity, the expert explained.

We have been talking for years about how TPP 2 should work. We warned at the beginning of last week what is happening in recent days, if someone is surprised, then he is not in class at all, Radev believes.

Yesterday, AOBR called on the institutions: the Ministry of Energy, Bulgarian Energy Holding EAD, Electricity System Operator EAD, to take urgent measures to:

- ensuring full load of the state company TPP Maritza East 2 EAD - / now the capacities of the state company TPP Maritza East 2 EAD are loaded below 25% - in the absence of technical, resource and organizational obstacles for full load /;

- temporary restriction on electricity exports - by the way, Greece has already taken such action with regard to its cross-border exchange capacity with Italy;

- support for the affected energy-intensive industrial consumers, given their objective inability to function due to inadequate and non-market institutional solutions; as a result of market associations, and this is beyond the possibilities for management and planned behavior of the Bulgarian non-state economic entities.