Bulgaria's Energy Sector at Risk as Copper Prices Soar

Copper prices have surged by over 20% on global exchanges, causing concerns for Bulgaria's energy sector. The Bulgarian Electrical and Electronics Association (BASEL) is warning that the country's thermal power plants, hydroelectric power plants, and electrical networks may be left without support due to unfair competition from outside the EU.

The sharp increase in copper prices, which has exceeded $12,000 per ton on the London Stock Exchange (LME), is making it difficult for Bulgarian companies to win tenders. According to NSI data, producer prices in the 'Production of basic metals' sector have grown by 19.8% in April and 21.5% in May.

BASEL Chairman Dr. Eng. Dimitar Beleliev argues that the fixed prices in Bulgarian tenders are a major issue. 'There is no way a Bulgarian company can win a tender at one price, and 6 months later buy the copper 30% more expensive and fulfill the contract without the risk of bankruptcy,' he said.

Beleliev also points out that neighboring countries such as Greece, Serbia, and Montenegro have already implemented indexation formulas for basic materials. He urges Bulgaria to follow suit and introduces a mandatory price indexation formula in all contracts.