Power Rates Discount for Large Industrial Consumers to Cost BGN 90 M - Energy Minister

A planned discount on electricity prices for large industrial consumers will cost a total of BGN 90 M, according to Bulgaria's Energy Minister Temenuzhka Pavlova.

According to a draft ordinance published by the Energy Ministry on Tuesday, companies consuming over 30 GWh a year will benefit from a 85% discount on the renewable energy component of the "obligation to society" fee on the energy consumed above that threshold, according to reports of investor.bg.

The ordinance was supposed to be ready at the beginning of 2015.

Bulgaria's Energy Ministry sped up work on it due to the tensions created by the proposal of the Commission for Energy and Water Regulation (KEVR) for the new power rates as of July 1.

Petkova made clear at a briefing on Wednesday that the discount would be available to around 30 large industrial enterprises.

She pointed out that the ordinance matched the guidelines of the European Commission on state aid, adding that the EC had to be notified before it could take effect.

The EC guidelines list the sectors entitled to this type of aid aimed at backing large energy-intensive industrial enterprises.

Petkova specified that the support could not be provided to too many companies as Bulgaria would run the risk of providing excessive state aid.

She noted that if the reply of the EC was delayed, large industrial consumers would pay an "obligation to society" fee of BGN 40.21/MWh and they would be reimbursed for the overcharge when the ordinance took effect.

According to calculations of the Energy Ministry, the discount will reduce the "obligation to society" fee to BGN 21/MWh.