Electricity and water bills: Between record consumption and political “traps”

The high electricity bills that shocked consumers last month are the result of a combination of colder weather and record consumption. However the state is launching a full audit of every complaint filed to rule out errors or abuse. At the same time the caretaker cabinet has ordered an investigation into how water operators across the country “coordinated” to raise water prices – a situation described as a “political trap” and a legacy of the previous government, which in January administratively held back the price increase under the pretext of adopting the euro.

This became clear at a briefing in the Council of Ministers after the end of the meeting convened by caretaker Prime Minister Andrey Gyurov with the relevant ministers on the subject.

Gyurov was adamant that the cabinet was facing a “time bomb” deliberately planted by the previous government.

We do not have a new government – new prices, but we have a new beginning – new prices,” he commented on the fact that the price increase is exploding in the hands of the caretaker administration.

According to him the situation is being used for political propaganda, even though the economic reasons date back months.

“Political trap” with the price of water

The ministers recalled that even before the holidays in December last year the Energy and Water Regulatory Commission (EWRC) approved the higher water prices throughout the country proposed by the water and sewerage operators. At that time the regulator approved a significant increase almost everywhere (in some places by more than 13%), but the previous regional minister Ivan Ivanov (BSP) administratively suspended its implementation under the pretext of “smooth adaptation to the euro.”

The current Minister of Regional Development, Angelina Boneva, confirmed that officials are carrying out a full analysis to determine who coordinated the price freeze and why. Boneva commented that she had received information from her predecessor but had nevertheless requested additional information.

I became interested in who held prices down and who coordinated raising them while I was in Brussels,” Boneva commented.

According to her Bulgarian Water Holding has submitted reports, but given the large volume of information she has yet to review it. A meeting with the Energy and Water Regulatory Commission was held on Tuesday to discuss the issue.

It is not clear whether the Ministry of Regional Development and Public Works will now call on water operators to keep prices down. Minister Traikov added that such administrative price controls (as with heating in 2 008) always lead to the accumulation of huge debts in the system, which are ultimately paid by consumers. He gave the example of Toplofikatsiya Sofia, where similar decisions have been implemented, and as a result its situation is increasingly dire.

Electricity: Higher prices plus record consumption

The Minister of Energy presented data explaining the high December bills. In addition to last year’s 14% increase in the price of electricity (according to the prime minister), statistics show a dramatic jump in energy consumption during the cold months:

• Elektrohold: 33% increase in consumption;
• Energo-Pro: 47% increase;
• EVN: 41% increase.

The combination of more expensive electricity and higher consumption results in bills that shock customers,” explained the energy minister.

The state has launched a full investigation to rule out errors or abuse on the part of energy companies. Laboratories and experts from the Ministry of Energy are checking the panels, seals and the accuracy of the measuring devices. Discussions are being held with the Electricity System Security Fund to verify the compensation paid to businesses and electricity distribution companies.

Every citizen who has filed a complaint must receive a personal response. If even a 1% violation is found, customers’ losses will be reimbursed and the companies will be sanctioned, the energy minister vowed.

The full report on the state of the energy system and the legitimacy of the bills is expected in early March.

We do not want the bills to be a pre-election argument,” Minister Traicho concluded, emphasizing that the goal is compliance with the law, not political dividends.

Translated with DeepL.