Zhecho Stankov: In order for the money from the RSP to come, the government is looking for an option on how to fulfill the commitments made for reforms

Household consumers should be calm, the state will not allow an increase in the price of electricity. On the contrary, we will guarantee their security - on the one hand, of supplies, and on the other - that family budgets are not disrupted. This was said regarding the liberalization of the electricity market for household consumers by the Minister of Energy Zhecho Stankov in the program "Why, Mr. Minister?" on bTV.

"Indeed, certain cases in the energy sector have worsened in the last few years. I attribute it to the fact that the many short caretaker governments plus the short mandates of the regular governments, in which unfulfillable commitments to Brussels were made, worsened the state of the energy sector," said the new energy minister in the regular cabinet of "Zhelyazkov".

And he specified that now is the time to be positive because of the newly formed regular government, which aims to "put Bulgaria back on the map as an unavoidable factor not only in the Balkans, but also in all of Southeast Europe".

Will there be another postponement of liberalization in the energy sector?

The liberalization of the electricity market should begin on January 1, 2026. After this date, the Energy and Water Regulatory Commission (EWRC) will not set the price of electricity for households. This means that households will be able to choose their own electricity supplier.

So far, the date for the start of liberalization has been postponed several times.

"When it will start is entirely in the hands of the people's representatives, but I want to assure all Bulgarian citizens that whichever of the scenarios is adopted - whether there is a transition period in the middle of the year or it is postponed in time, the state energy sector is ready to in no way expose households to the impact of high electricity prices," assured Minister Stankov.

"We have prepared a mechanism, if the transition period for liberalization starts on July 1, with your first electricity bill, if up to now you have received an electricity bill in the range of 150 leva, and after the liberalization of the market you receive a bill of 400 leva, then there will be a separate line with minus 250 leva, so that the amount you pay to the electricity distribution companies can again be the same as it is at the moment," he said.

Vladimir Malinov's return to Bulgartransgaz

The way in which the former Minister of Energy Vladimir Malinov quickly returned to Bulgartransgaz as part of the company's Management Board alarmed representatives of "We Continue the Change". According to them, this is in violation of the Anti-Corruption Act. They demanded a hearing of Minister Stankov in the National Assembly on the case.

"My colleagues from the PP have scheduled a hearing on Wednesday. First of all, I appeal to them to familiarize themselves with the Public Enterprises Act. The Minister of Energy does not have the right to interfere directly in the management of the company, and therefore these types of companies like Bulgartransgaz have a two-tier form of management - a Supervisory and a Management Board," said Minister Stankov.

And he specified that it was the Supervisory Board that made the decision to reinstate Malinov as a board member, and this was approved by the regulator.

He also announced that he would explain all of this on Wednesday when he went to parliament.

Power outages - what compensation will the victims receive?

Nearly a month after people in Central and Northern Bulgaria were left without electricity during the holidays, the state promised compensation. And the compensation should be deducted from their electricity bills in January.

"Unfortunately, we cannot turn back time, but what we have taken as an action, the funds provided by the state within the framework of 2 million and 200 thousand - to find the fastest possible way for this money to reach the people. On Monday, I gathered the electricity distribution companies and we agreed that the most correct way is for this to happen through the electricity bill," said Minister Stankov.

And he assured that every household left without electricity for 24 hours will receive 30 leva and for each 12th hour that has begun - an additional 20 leva. This will be deducted from electricity bills after February 25.

"It was important for me that this should happen without any administrative burden, without these people having to go to any client center to fill out documents, but on the contrary - that this should happen automatically," he added.

According to the minister, this state aid does not cancel the obligation of the electricity distribution companies should also pay assistance based on a request from the households themselves.

"Here I see the problem, because I do not think that households should rush through this process. With other amounts - after there was a problem with the electricity supply service, they should go and submit documents somewhere, this process should be the other way around - the companies should be obliged to compensate the households. It is precisely on such a bill that we are currently working in the ministry," he said.

Compensation for businesses - what is happening?

One of the first decisions of the "Zhelyazkov" cabinet was to extend the program for compensation for businesses due to extremely high electricity prices. This is valid for a period of up to three months.

"The funds for compensation for Bulgarian businesses have not had to come from the state budget over the years - they again came with up to 90% from state-owned companies in the "Energy" sector. The period is three months because we currently have an extension law for the state budget within three months," said Minister Stankov.

And he announced that everything above 180 leva per megawatt-hour up to the average market price will be compensated through the "Security" fund of the electricity system.

"Not only do we guarantee the preservation of their competitiveness and tens of thousands of jobs in energy-intensive businesses, but we also encourage them to increase their salaries with the funds they save," he specified.

We recall that a few days ago, the chairman of the Association of Industrial Capital in Bulgaria - Vasil Velev, requested a national mechanism to compensate businesses for high electricity prices, which would be included in a permanent law.

The law will be activated or deactivated depending on whether there is a crisis or not.

Minister Stankov announced that he categorically supports such an idea, but under certain conditions: "I support it, of course, but we must take into account which are the strategic industries. We cannot continue to give to everyone indiscriminately. We must determine which are these industries and direct this assistance to them."

Postponed energy reforms

Bulgaria is the only country that has not received the second tranche of the Recovery and Sustainability Plan, which is also due to the non-existent forms in the energy sector.

"The reforms that are currently on the agenda were undertaken by the regular government of Kiril Petkov. Unfortunately, as Deputy Minister of Energy until April 2021, I was unable to convince them that they should not undertake these commitments in the next regular government. Now these commitments are on the agenda and we need to find a way to fulfill them," said Minister Stankov.

He specified that the commitments that should not have been undertaken by the government of the co-chair of "Continuing the Change" are three - the roadmap, the liberalization of electricity and taking two of the strategic companies out of the BEH (Bulgarian Energy Holding) hat.

"Regarding the roadmap, the last session in parliament was so critical that everyone was already in an election campaign. The roadmap itself is a document, not a law or regulation. I am of the opinion that at the moment the political forces will find a way to adopt this document," he said.

"In all the strategic documents that we have set, we guarantee the country's energy security by preserving our coal-fired power plants until 2038. This roadmap in no way prevents the power plants from operating until then," the minister assured.