At a record electricity price of BGN 1,200, stopping exports means a loss of billions

At a record electricity price of BGN 1,200, stopping exports means a loss of billions

“We want to insist to the EC that we have the right as a country to limit our electricity exports.” This was announced by Vanya Grigorova, economic expert of the trade union KT “Podkrepa”, yesterday during the briefing of the Energy Crisis Staff of the caretaker government. Moreover, she stated that, unlike other times, now their request was heard by the rulers. There is no reaction from their side on the issue – neither denying that they agree to limit the export of electricity, nor expressing approval for such a move.

Although apart from the hot topic with gas, the call to stop the export of electricity has a huge significance for the Bulgarian economy and could lead to even bigger consequences. First of all, the country will lose billions, especially now with the record high prices at which electricity is sold – on August 23, a historical record of BGN 1,207/mWh was registered. And secondly, which is in direct conflict with the trade union activities, factories like “Maritsa-East 2” will have to stop working because there will be no one to produce for.

When it’s expensive, don’t sell

The logic of the market is to sell goods at the highest possible prices in order to make a profit. According to Grigorova, however, right now, when electricity prices are at their highest, Bulgaria must stop exporting electricity in order to satisfy its domestic needs and for the price to drop.

However, there is no logic in such a statement, since even now, when it exports almost to the maximum, the country does not experience problems with meeting its internal needs, and even has capacities that are not working. If part of the energy was not sold abroad, in reality even more plants would have to stop working. In this case, it would be the coal-fired thermal power plants, since the cost of their energy is the highest and in the event of a drop in demand, they will be the first to drop from the market. Or to put it another way, the unions really want to limit the activity of the energy companies and for the energy workers who are their members to remain unemployed.