Bulgaria to protect poor during electricity market liberalization: minister

Bulgarian Energy Minister Temenuzhka Petkova on Thursday said the country's government would protect poor consumers in the upcoming process of full liberalization of the electricity market.

"The full liberalization of the electricity market is extremely important because it will allow Bulgarian energy sector to emerge from the financial crisis, and to move in the right market direction," Petkova said at a conference.

She said that the World Bank is advising Bulgaria in selecting a model for full liberalization of the electricity market, and now the two sides are holding final discussions on this issue.

Meanwhile, Bulgaria has to protect the vulnerable consumers from possible price increases, the minister said.

"I want to assure Bulgarian consumers that the government will not take any action before we are aware of how we will protect vulnerable consumers," Petkova said.

Last September, the Center for the Study of Democracy said in a report that in Bulgaria the financial situation of the state-owned energy enterprises such as the National Electric Company (NEC) has further deteriorated in the past 24 months, while regulated tariffs for household consumers are at least 54 percent lower than NEC's power purchase prices.

At the same time, the possible increase of electricity and central heating prices towards a market-based cost would have disproportional negative effects on energy poverty of households, especially in big cities where these are the main souses of energy supply, the report said. Enditem