Ministry of energy: The total amount of compensation with money from the energy sector will exceed BGN 4.5 billion by the end of June

The total amount of financial compensations received by businesses and households in Bulgaria will exceed BGN 4.5 billion by the end of June. The funds come mainly from the high energy revenues of the companies, which also generate significant profits along with the high electricity prices on the international markets. The information was given on the occasion of widespread statements by the GERB party that the funds in support of the business are only BGN 1.6 billion. The amount of over BGN 4 billion includes the funds that the government took from NEK in the arbitration case with the Russian Atomstroyexport for Belene NPP The funds went to the central budget, and the state subsequently allocated a similar amount to buy grain to replenish the military-temporary stockpile.

In connection with the information disseminated today in the National Assembly by GERB that there is a difference between the value of compensations declared by Prime Minister Petkov due to high energy prices and the data of the Minister of Energy Alexander Nikolov on compensations paid for electricity prices, we specify the following:

In a speech to the National Assembly on May 13, 2022, Prime Minister Kiril Petkov said that in order to curb inflation, the government had allocated BGN 4.1 billion.

In a written answer to a question from MP Delyan Dobrev, Minister Nikolov presented in tabular form the compensations paid in December, January, February and March to non-household consumers, electricity distribution companies, the Electricity System Operator and NRIC, which Mr. Dobrev asked about. These compensations amount to a total of about BGN 1.6 billion. The answer to Mr. Dobrev does not include:

- BGN 1.2 billion, repaid by NEK on the loan with which the company repaid after the lost arbitration case with Atomstroyexport for the equipment for Belene NPP. These funds were also used for anti-inflation measures, but not only in the energy field;

- Compensation for all non-household consumers for April;

- Compensation for natural gas;

- Support for network operators, which lasts until June;

- Compensation for water and sewerage operators;

- Support for students to mitigate the negatives caused by high electricity prices in dormitories;

- The compensations initially approved by the Cabinet of Ministers for the months of October and November 2021, which were subsequently repaid, upgraded and expanded by the regular government.

The compensations for all these groups are approved by the Council of Ministers, ie. their payment, which continues to this day, is guaranteed.

In addition, the fact that the compensations continue until the next decision of the regulator regarding the prices of electricity and heat shows that their total amount will exceed BGN 4.5 billion.