site.btaEVN Bulgaria to Challenge Parliament’s Decision to Compensate Household Customers Who Were Left without Electricity in December

The management of one of the three electricity distribution companies in the country, EVN Bulgaria (EVN), has strongly objected to the draft law adopted at the second reading by the National Assembly on providing financial support to residential end customers of electricity who were left without electricity in the period December 21-31, 2024.

"We are surprised by the decision adopted Tuesday in the Parliamentary Energy Committee and Wednesday in Parliament on the provision of financial support to household end customers of electricity, according to which energy suppliers must suddenly bear the cost of state support, and that non-compliance with this decision will result in a fine of BGN 700,000," said Alexander Sipek, Chairman of the Board of EVN Bulgaria, at an extraordinary press conference at the BTA National Press Club in Sofia.

From December 21 to 31, 2024 electricity supply was interrupted for more than one day in a number of municipalities of the licence territories of Electrodistribution Grids West, North, and South.

Operators of electricity distribution networks, in whose licence territories are connected household end customers under the bill, shall reimburse the Fund "Security of the electricity system" the funds paid by it for compensation to the respective end supplier, whose licence territory coincides with the territory of the operator, the MPs decided Wednesday.

According to the text adopted in the draft law, the reimbursement of the funds shall be carried out by voluntary execution within one month after receipt of an invitation for payment from the Fund, accompanied by a document certifying the amount paid.

Sipek asked how such decisions could be taken in a European country and how sanctions could be imposed on private companies without an objective reason.

The Chairman of the Board of EVN Bulgaria pointed out that they have made a quick initial analysis of this decision and they believe that it violates the Constitution of Bulgaria, but also European legislation. In addition, there is a significant risk of double payment of compensation to individual customers.

In his words, there is no way that such decisions will not affect the country as a business destination and a place for international investment.

“We have already sent our opinion to the relevant committees and we will use all legal possibilities we have regarding this decision,” Sipek said.