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Power rates prompt fresh street protests

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The outgoing week saw various mass protests in Bulgaria. They peaked on Wednesday when 2385 companies employing more than 210,000 from across the country joined a national protest for reforms in energy and against the increase in the Obligation to Society fee added to the price of electricity. The protest was launched by the country’s four employer organizations with unprecedented support from the biggest trade unions – the Confederation of Independent Trade Unions in Bulgaria and Podkrepa Labor Confederation. Discontent was prompted by an anticipated increase in the Obligation to Society fee and respectively in the price of electricity for the industry.

In Sofia protesters made clear that the action was not aimed at overthrowing the government but rather at persuading the independent watchdog, the Energy & Water Regulatory Commission (EWRC), to abandon plans of raising power rates.

Reactions from parliamentary political groups varied. Gerb said they were surprised given that the regulator had not announced the new rates. The Reformist Bloc recalled their position that there was no way for the Obligation to Society fee to be different for households and the industry. The BSP urged the government to take measures and protect the competitiveness of Bulgarian goods with a view to possible higher power rates. The Patriotic Front said that businesses and trade unions had a good reason to hold protests.

The Chairman of the Energy Commission in parliament Delian Dobrev from Gerb voiced his surprise over the joint protest of trade unions and employers, because employers wanted to cut costs in energy while the trade unions opposed this. Dobrev commented that a delay in the decision over electricity prices would entail further deficit in the system. Measures in energy have been made and cuts amount to hundreds of millions of leva.

In this volatile situations PM Boyko Borissov decided to act with Solomon wisdom by saying that EWRC should make precise calculations and explain everything in public while Borissov himself would accept its decision. Borissov went on to say that the deficit at the National Electric Company stood at 1.9 billion euro and somebody had to pay it, namely, the state and the people. How this colossal deficit has been accumulated though should be the subject of a separate commentary.

English Daniela Konstantinova


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