site.btaCompensation Payments for High Electricity Prices Continue in Q1 of 2023

Non-household customers and operators of the electricity transmission network and the electricity distribution networks will continue getting compensation for the high prices of electricity until the end of March 2023. The cabinet Wednesday approved a compensation programme for January-March 2023.

The programme builds upon earlier documents aimed to mitigate the negative impact of the surge in electricity prices on businesses. It will reach out to all 633,000 non-household end customers of electricity and to the networks operators for their technological costs.

The programme has an indicative budget of nearly BGN 330 million for all customers and operators when the average monthly base load price on the Day Ahead segment of the Independent Bulgarian Energy Exchange (IBEX) exceeds the projected market price for the regulatory period set by the Energy and Water Regulatory Commission. The money will come from the target contributions to the Electricity System Security Fund.

All non-household end-customers will be fully compensated for the difference between the actual average monthly base load price on the Day Ahead segment of IBEX and a base price of BGN 200.00/MWh.

The operators of the electricity transmission network and the electricity distribution networks will get compensation for the electricity they buy for their technological costs.

The maximum amount of the compensation is the difference between the actual average monthly base load price on the Day Ahead segment of IBEX and the projected market price set by the regulator at BGN 421.08 MWh for the operator of the electricity transmission network and BGN 446.78 MWh for the operators of the electricity distribution networks.

The payment of compensations to the operators in the first quarter of 2023 will help to cut their financial deficit arising from higher technological costs, thus limiting the need of increasing the price of network services for all end-customers.

Compensation under the programme will be paid out by the end of June 2023.