site.btaOrganizations Call for Urgent Compensation for High Industrial Electricity Prices

Employer organizations and sectoral associations have called on the government to take urgent measures to compensate for high electricity prices in the industrial sector. They issued the call in a joint statement to the caretaker Prime Minister and the Ministers of Energy and Foreign Affairs, as reported by the Bulgarian Industrial Association on Monday.

The statement refers to European Council decisions of March 19 and remarks made by the President of the European Commission and the President of the European Council regarding the impact of the energy crisis on the European economy.

The statement notes that Bulgaria’s energy-intensive industry accounts for approximately 26% of gross domestic product and plays a key role in employment, regional development, and strategic supply chains. In the current environment of high and volatile energy prices, the absence of adequate compensation mechanisms creates a real risk of lost competitiveness, production limitations, and the relocation of investments outside the country and the European Union. According to the organizations, a lack of timely action will have a direct and immediate effect on economic activity in the country, including through production cuts, job losses, and investment relocation abroad.

The organizations are calling for immediate measures to accelerate the notification of the industry support mechanism, with an updated compensation rate covering 50% of electricity consumed, with a lower threshold of EUR 50/MWh instead of EUR 63.9/MWh. They argue that Bulgaria must take an active and consistent position in upcoming European discussions related to changes in the Emissions Trading System, the Carbon Border Adjustment Mechanism, network fees and the tax framework, and ensure effective coordination between institutions and industry in developing practical solutions.

The statement is signed by the leaders of the Bulgarian Industrial Association, the Confederation of Employers and Industrialists in Bulgaria, the Bulgarian Chamber of Commerce and Industry, the Bulgarian Association of the Metallurgical Industry, the Bulgarian Association of the Cement Industry, the Bulgarian Chemical Industry Chamber, and the Bulgarian Federation of Industrial Energy Consumers.