24.09.2021
Will the pace of appreciation of goods and services continue to accelerate or will it be controlled? This issue was discussed in the BNT program "Referendum" on September 21st. The discussion was attended by Assoc. Prof. Viktor Yotsov from the Institute for Economic Research at BAS, Assistant Professor Vasil Karaivanov, Chairman of the Bulgarian Macroeconomic Association, economist and lecturer at Sofia University "St. Kliment Ohridski", Iliya Lingorski, Chief Economist of the Bulgarian Development Bank and Konstantin Prodanov, financier.
When asked about the price levels of electricity and fuels, which are constantly rising, and the prices of water supply and sewerage services, which are defined as "almost frozen", Assistant Professor Karaivanov commented: "EWRC regulates not only the prices for water supply and sewerage services , but also the prices of electricity. By the way, in Western Europe - France, Germany - there is social tension, because this 3% inflation for the previous months, which is average, is the result of a 15% rise in electricity prices and energy sources in general, because there are no regulated household prices. We are still in a very good situation because our electricity market is not fully liberalized and consumers, households are not on the free market, as in Western Europe. If it was, as in Western Europe, the reported inflation would be 10 points higher. We have a slowdown in the liberalization process. In principle, the electricity market should have been liberalized in Bulgaria a few years ago. A delay in public administration is now actually being very useful for the people. In the water and sewerage sector we have another problem that is yet to come, because EWRC will still approve the business plans and prices for the next 5-year period".
"If we look at the EU, it imports two-thirds of the energy resources that the Union needs. Bulgaria, in comparison with the EU, is in a better position, because in our country only half of the energy resources are imported ", commented Assistant Professor Karaivanov regarding the plan for achieving carbon neutrality in 2050.
The whole discussion on the topic of inflation, in which Assistant Vasil Karaivanov took part, can be found here.