site.btaElectricity Price Cap Severely Distorts Market - Expert

In countries that introduce subsidies without any elements of influence on consumption or commitments to energy savings, this does not lead to a reduction in consumption, said Staykov. He pointed out that this is the case in Bulgaria. "The logic is that when you have high prices, it signals that there is a shortage of something on the market. When there is a shortage of something, the normal behaviour is for consumption to adapt at least a little bit to this situation, but as you can see with the price ceiling, in our case the effect is exactly the opposite," the economist said.