site.btaEnergy Minister Slams President’s Referendum Proposal on Euro, Cites Botas Contract Daily Costs

"Bulgaria chose its path long ago, and it is pro-European," Energy Minister Zhecho Stankov told Darik Radio on Saturday, commenting on President Rumen Radev’s idea to propose a referendum in the National Assembly on Bulgaria’s adoption of the euro. Stankov emphasized that the National Assembly is already taking all necessary steps for Bulgaria to join the Eurozone, but this process does not depend on any kind of referendum – it hinges on the convergence reports from the European Commission and the European Central Bank, expected to be released on June 4.

"With the same reasoning, the president could have proposed a different referendum, one that directly concerns me as energy minister and every Bulgarian citizen: 'Do Bulgarian citizens agree to continue paying BGN 1,050,000 per day under the contract with Botas?' That referendum would be just as legitimate as the one currently being proposed," Stankov argued.

He added that he sees the proposed euro referendum as an initiative serving the president’s personal political interests over Bulgaria’s long-term development, calling it a form of political bidding. According to the energy minister, the president’s remarks have further consolidated and "cemented" the current government, as joining the Eurozone is one of its key political goals.

Stankov stressed that the main objective of the current government was to restore normalcy to the country, and that such a referendum would destabilize this effort and overshadow the benefits of Eurozone membership.

On the topic of the agreement with Turkish company Botas, the energy minister noted that this is the first contract he has seen that contains no exit clause. He said that he had tasked Bulgargaz and Bulgartransgaz with conducting relevant discussions. "These talks are ongoing at the technical level, but put yourself in the Turkish side’s position – if you’re receiving BGN 1,050,000 per day, would you be in a hurry to renegotiate?" Stankov asked.

Regarding the postponed liberalization of the electricity market for household consumers, the Energy Minister said that, in his view, the most appropriate course of action is to ensure households remain calm. According to Stankov, the liberalization should be delayed until as many residential buildings as possible are renovated, as this activity reduces household energy bills by 50% in the long term.

"My vision is for households to enter the free market when the market price equals or is lower than the regulated price set by the state. Combined with energy efficiency measures – like the renovation of multi-family buildings – this would mean that not only will household bills remain stable at their current levels, we will even aim to reduce them by half," Stankov said. He added that, so far, renovation programmes have covered only multi-family buildings, but efforts will be made to include single-family homes as well.

The Energy Minister believes there should be no fixed date for liberalizing the electricity market for household consumers, and that the transition period should remain open for the long term.

As for the decision not to sell the reactors from the Belene Nuclear Power Plant project, Stankov said the easiest thing would have been to sell them, but the government is determined to explore all other options first.