site.btaEnergy Minister Nikolov: Compensations of over Lv 4 Bln Have Gone Back to the Economy between December 2021 and April 2022

From the inauguration of the cabinet in December 2021 to April 2022, compensations of over 4 billion leva, which is over 3 per cent of GDP, have been returned to the economy, said Energy Minister Alexander Nikolov at a briefing in the Council of Ministers. He made a brief report regarding the energy sector on the occasion of the 100th day of the government.

The Minister said that over the same period, household spending on electricity and heating has remained unchanged. By comparison, the average cost of electricity in Europe increased by 30 per cent over the same period. Electricity companies continue to operate at full capacity, Nikolov said. He stressed that all requested compensations to businesses were paid and despite the huge volume of transactions, there is no indication of incorrectly translated or incorrectly paid compensations.

As of March 23, compensations of over 223 million leva have been paid for natural gas, energy distribution companies have received 471 million leva as a result of compensation for technological costs. Direct compensations for business consumers, corporate compensations for businesses have amounted to  1.440 million leva so far, water companies have received 107 million leva, the Minister pointed out. Nikolov said that as a result of Wednesday's government decisions, business compensation will be extended. The Minister noted that a loan related to the payment of a fine from the European Commission to the National Electricity Company will be repaid, respectively the funds will be returned to the Ministry of Finance and from there back to the Bulgarian economy.

Minister Nikolov also said that the expenses for salaries in energy companies are increasing at a significant rate. Despite speculation, caring for the people employed in the companies remains and will continue to be a clear priority not only for the Ministry of Energy, but for the government as a whole, he stressed.

Regarding  inspections in electricity distribution companies, the Minister said that he would be more than happy to have such in view of the fact that this would increase the transparency of the way the companies are managed. "Whether specific violations have been found or not should be established by the competent authorities," the Minister said. "Yes, there are strange moments in the dynamics of prices and the management of specific capacities, but this must be established by the authorities," he stressed.