Publishing the report “Charting a Course Through the Energy Crisis: Assessing Bulgaria’s Response to Soaring Prices and Outlook on the New EU Market Design”

The Faculty of Economics and Business Administration, through its research unit Net-Zero Lab, has released a comprehensive report assessing the regulatory measures implemented by Bulgaria in response to the energy crisis between 2021 and 2023. In response to rapidly escalating energy prices, the European Union adopted Regulation 2022/1854 in October 2022. Its aims were to enhance energy independence through the intensive use of renewable energy sources and reduce dependency on Russian energy imports. Member states, including Bulgaria, implemented diverse measures to alleviate the strain on non-household consumers, although these varied widely in scope and effectiveness.

This regulatory insight report, based on document review and expert opinions, critically evaluates Bulgaria’s implementation of Regulation 2022/1854, focusing on its alignment with EU goals and its broader impact beyond immediate financial relief.

You can download the report here.
You can download the report’s supplementary analysis on the macroeconomic effects of energy price control measures in Bulgaria here

The report was presented at a roundtable discussion on June 21, 2024, attended by experts, policymakers, industry representatives, and media. The discussion was moderated by Assistant Professor Dr. Maria Trifonova, Deputy Director of Net-Zero Lab, who emphasized that issues regarding the effectiveness of regulatory measures in the energy sector are central to the research and educational activities of the Faculty of Economics and Business Administration.

Source: BTA

Key findings indicate that Bulgaria’s approach, characterized by early and extensive business assistance without adequate incentives for behavioral change, raises serious concerns about the long-term sustainability and stability of the market. The imposition of unprecedented price caps on electricity consumption and production further complicates market dynamics, leading to unexpected consequences such as increased trading volumes in the “Day Ahead” market and a decrease in long-term contract agreements.

Summary of the round-table discussion in Bulgarian here

Topics discussed:
– Assessment of the impact of measures in Bulgaria in response to more extreme energy prices (by Kaloyan Staykov, Chief Economist in The Institute for Energy Management)
– Business Retrospective (by Dr. Ivaylo Naydenov, Executive Director of Bulgarian Federation of Industrial Energy Consumers)
– State measures to create a more effective energy price compensation program (by Vladislav Panev, Member of the Parliamentary Committee on Energy, 48th National Assembly)

Topics discussed:
– European perspective on the crises and the new market design (by Cillian O’DONOGHUE, Director– Policy at Eurelectric)
– Reaction to rising energy prices from other European countries (by Kostanza Rangelova, Energy Expert, EMBER)

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