Bulgaria's Energy Sector at Risk as Copper Prices Surge

Copper prices have surged by over 20% in recent months, causing concerns for Bulgaria's energy sector. The rise in metal prices on world exchanges has been combined with unfair competition from companies outside the EU, particularly China, India, and Turkey.

The Bulgarian Electrical and Electronics Association (BASEL) is sounding the alarm, urging an urgent change in public procurement rules. According to NSI data, producer prices in the 'Production of basic metals' sector have recorded a double-digit growth compared to last year - by 19.8% in April and 21.5% in May.

The main driver is copper, whose price on the London Stock Exchange (LME) has exceeded $12,000-$13,000 per ton. Since copper forms up to 60% of the cost of materials in each repair of a generator or transformer, the price increase makes previously planned budgets unfeasible.

BASEL Chairman Dr. Eng. Dimitar Beleliev comments that '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.'