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On the Effect of Measures for Compensation on the End Consumers of Electricity on the Free Market

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  • Anton Ivanov

Abstract

This article aims to examine the national mechanism applied in Bulgaria to tackle the high electricity prices in the period 2021-2023 and its impact on state-owned enterprises, which are the main source of the compensation funds. The proposed thesis is that with the collection of the revenues of state-owned companies, they are posted in conditions of restriction in terms of development opportunities, which is why the imposed emergency measures should be reviewed in the future. Although the measures themselves are widely discussed, the mechanisms for providing financial support, the financial magnitude of this support, as well as its effect, are yet to be clarified, and the data collected in the material may be useful for further analyses and evaluations.

Suggested Citation

  • Anton Ivanov, 2024. "On the Effect of Measures for Compensation on the End Consumers of Electricity on the Free Market," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 100-113.
    • Handle: RePEc:bas:econst:y:2024:i:5:p:100-113
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    File URL: https://www.iki.bas.bg/Journals/EconomicStudies/2024/2024-5/06_Anton-Ivanov.pdf
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    References listed on IDEAS

    as
    1. Ladenburg, Jacob & Jensen, Kirsten Lund & Lodahl, Christa & Keles, Dogan, 2022. "Testing for non-linear willingness to accept compensation for controlled electricity switch-offs using choice experiments," Energy, Elsevier, vol. 238(PB).
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    More about this item

    JEL classification:

    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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