EWRC ready to introduce block prices for electricity, heating and water, if MPs say "yes"

The Energy and Water Regulatory Commission (EWRC) is working on the idea of ​​introducing the so-called block prices or payment of a certain consumption at some prices, and above it - at others, higher. This was announced on the air of the Bulgarian National Radio (Sunday 150) by the chairman of the energy regulator Stanislav Todorov.

"We are ready, if the National Assembly votes for us, to introduce a block of tariffs. This means paying a tariff for a certain consumption of gas, water and electricity. In this way, we may cover about 50 percent of the population, and the bill will be regulated and at lower prices than market forces would require.

Above this consumption, if you water the garden with water, or fill your pool with water or heat 800 square meters of residence, then obviously your bill should be higher, "explained Todorov.

According to him, then the consumption, which has one one-bedroom apartment and one residence will be at a completely different price.

"Currently, the commission is ready, we have experience with such block pricing," said the EWRC chairman, recalling that until 2015 such pricing existed for water and electricity.

"If the MPs give us this power, we can introduce them with an extraordinary price decision and thus protect the most vulnerable part of the Bulgarian population. We are ready to do it for electricity, heating and water. We can introduce them within a month and a half. This means that the price will be paid, as last year. There will be no increase, said Stanislav Todorov.

“If the National Assembly votes on such a power, we are ready to introduce it within a month and a half," said Stanislav Todorov.

In response to a question, he also commented on the protection of the energy poor. Regarding the definition of energy poor, Todorov pointed out that this is in the power of the executive branch, and the National Assembly to adopt it.

At the same time, he said that the definition of income is incorrect. "Defining the criterion of 'energy poor' family, say people with incomes up to BGN 2,000 requires a constant update of this criterion," said Todorov, citing the example of selling, for example, an apartment, a change in income.

"This is a very difficult administrative procedure with the involvement of a very large administrative apparatus in it. Not to mention that it can be manipulated. I think that block prices give a much more universal and automatic answer to this problem. All people with low consumption will be able to get their electricity, water or heat at a low regulated, reasonable price, "said Stanislav Todorov.

We remind you that the definition of energy poor proposed in 2018-2019 was based on the necessary energy consumption.

150-300% was the requested increase in district heating in the country, it was based on objective facts, but the EWRC has found mechanisms to compensate for their increased costs, said earlier in the conversation the chairman of the EWRC. "Not only through the price that household consumers have to pay, but also with some reserves in the so-called Energy Security Fund of the system. The realistic increase they had to ask for was actually around 100-120%.

The Chairman of the EWRC advised people to take some measures to reduce consumption during the summer season, on the one hand with energy efficient measures, such as remediation, on the other - with RES for own consumption. According to him, within two or three years the investment in this direction pays off. In this regard, he explained that "a lot of money" will come from the Recovery Plan under these two measures.

Natural gas

"Bulgaria will have security and clarity when there is another long-term contract - either for liquefied gas or for an alternative supplier. To buy on the spot markets - month by month and day by day, this is the most expensive price. The Bulgarian consumer and EWRC do not to be clear until such long-term contracts are concluded." This was commented to BNR by the chairman of the Energy and Water Regulatory Commission Stanislav Todorov.

This is the biggest energy crisis Europe has faced since the 1980s, he said on Sunday 150.

"We are operating in extraordinary conditions that Europe has not seen in the last 40 years. Bulgarian household consumers receive the lowest price of gas and electricity in all of Europe."

According to the pricing method for 2022/2023, experts with many years of experience worked for more than two months in consumer protection, said Todorov.

Russia is using its energy supplies to Europe as one of its main weapons of pressure, the EWRC chairman said.

The latest price announcement from Bulgargaz is expected on Monday. For the first time in its history, the company makes two deliveries of liquefied gas, said Stanislav Todorov. He called it a "feat" that they had managed to secure alternative supplies for May.

There is an understanding in all parliamentary groups that this energy crisis will continue, regardless of who is in power. Measures must be taken and these measures are recognized by all parties, Todorov added.