Caretaker Minister of Energy, Vladimir Malinov, addressed concerns regarding potential electricity price increases during a hearing, assuring that there is no immediate risk of electricity shortages. However, he acknowledged that the future price of electricity remains uncertain. He confirmed that the state-owned energy sector is currently operating at full capacity.
Malinov revealed that in late November, the National Electricity Company (NEK) sent a letter indicating a significant overrun in electricity demand from end suppliers for the regulated market, which is expected to continue through the pricing period ending 1 July 2025. This demand increase surpasses both previous forecasts and the pricing decision by the Commission for Energy and Water Regulation (KEVR). From 1 July 2024, demand is expected to exceed the quantities set by KEVR, with electricity consumption between July and November already exceeding forecasts by over 500,000 MWh. Due to higher household demand in the winter, NEK and the Ministry of Energy anticipate a further rise in consumption, possibly up to 1,000,000 MWh. Despite this, Malinov reassured that household electricity needs would be met.
To ensure supply, NEK has been purchasing additional electricity from the state-owned TPP Maritsa East 2, beyond the original allocation by KEVR. This strategy is intended to meet supplier requests and maintain the stability of the transmission system. However, NEK warned that this could lead to the depletion of TPP Maritsa East 2’s regulated market quota earlier than expected.
Earlier this week, the Ministry received a report from TPP Maritsa East 2 confirming that NEK had already bought more electricity than initially projected by KEVR. Nonetheless, TPP Maritsa East 2 assured that it could still supply an additional 800,000 MWh of electricity for the winter season.
One of the concerns is the potential price increase for households, driven by the gap between KEVR’s regulated price of 88.3 euros/MWh and the current market price, which was 127.1 euros/MWh on 11 December. The production cost of electricity from TPP Maritsa East 2 is approximately 135 euros/MWh. Although KEVR is responsible for setting any price increase, Minister Malinov expressed confidence that measures would be put in place to limit the impact of the price hike on consumers.
