In energy, the goal set - a 40% reduction in the carbon footprint of the electricity system, which was set for 2026, was achieved last year. This did not happen with administrative measures, closing thermal power plants, not with restrictions, but simply the market gave low prices and these capacities did not work, because there was no way they could make a profit. There is not a single closed thermal power plant. It was achieved that in the winter, when prices are high, we can use them fully, and in the spring and autumn, when they are low, they do not work. This was expected. This was commented on the program “Hello, Bulgaria” by Assen Vassilev.
He does not think that the planned liberalization of the electricity market, which was supposed to happen in 2024, but was postponed, is worrying.
“There was already a mechanism for compensating the bills of non-household consumers. There is a price ceiling there and if it goes higher, businesses receive compensation. The same mechanism was also provided for household consumers”, commented Vassilev.
He explained how low prices are currently achieved. “Low prices are given by the Energy Regulatory Commission for the purchase of energy, especially from the “Kozloduy” NPP and this is transferred through NEK into low prices for households. If the household passes to the free market, this will be taken as compensation and given for household bills”, explained Vassilev.
The former Finance Minister also responded to another accusation by Grozdan Karadjov, who was also a regional minister in Kiril Petkov's cabinet. Karadjov said that the PVU, with the amendments, passed “like a fast train” and the other ministries did not manage to see it. He said that they were forced to vote on it, and they understood what it contained from the media.
”In addition to voting in the Council of Ministers, he also sent a conciliatory letter stating that he had no objections to the plan. Each ministry has at least 1-2 weeks to give its opinion. It cannot pass from one day to the next, especially the PVU. I don't know why Karadjov is saying these things," said Vassilev.
Vassilev also commented on why the projects are lagging behind. "11.7 billion has been agreed, that is, almost all the money that should be invested in Bulgaria according to the plan. I'll give an example - BDZ has known since May 2022 that they have money for new trains. Kiril Petkov's government had started writing the order. When we entered the office of "Denkov" there was one order placed. For about 10 months, the work had not progressed much. Orders were placed, along with the wishes, one order will be fulfilled, for the other a decision was reached in January 2024 and then there was no longer a contractor to fulfill it. There was only one Chinese company, but the EC told us that it would not allow us to sign a contract with it. Now this money must be redirected”, said Vassilev.
He also gave an example of problems with the renovation orders. “Since May 2022, it was clear that we have 2.5 billion and a half. The MRDPW had not even launched the competitions for municipalities and blocks to apply. The list of blocks for renovation was approved in December. There was a request for reclassification, the reclassification was completed in March. Since then, not a single contract has been signed”, said Vassilev.
The reason we will not receive money is the fault of every single beneficiary under the plan who has delayed their orders, Vassilev believes.