Europe

Bulgaria approves plan to support companies from high energy prices

Bulgaria’s government has approved a new measure that will support companies amid rising energy prices.

Prime Minister Kiril Petkov announced on Monday that the country will partially compensate businesses for high electricity costs amid the war in Ukraine.

Under the plan, the government will cover 80% of electricity prices that are above 200 levs (€102) per megawatt-hour in May and June.

Sofia will also fully compensate for the 14% increase in natural gas prices after Russia cut supplies to the country last month.

The announcement came after a meeting between Petkov and representatives of employers’ organisations and trade unions.

In a statement, Petkov said that the European Union country was also preparing “a long-term support mechanism if necessary” alongside the new measures.

“This will ensure predictability for businesses in case market volatility continues,” he said.

Bulgaria had already frozen regulated electricity prices for households and has been compensating companies for high energy costs since October.

The EU member state had relied on 90% of its gas from Russia before Gazprom cut exports over Bulgaria’s refusal to pay in roubles.

Sofia has since urgently secured alternative gas supplies from Greece and is working on a new deal with Azerbaijan.

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