site.btaEnergy Bills Will Not Rise after Full Market Liberalization, Energy Minister Says

Household electricity bills will not rise even after the full liberalization of Bulgaria's energy market, Energy Minister Zhecho Stankov said in an interview for the Bulgarian National Radio on Sunday.

He explained that a mechanism to compensate household consumers through the Energy System Security Fund has been established and assured the Ministry of Energy is prepared for all possible scenarios.

Stankov stressed that regardless of when liberalization takes effect, electricity prices for households will remain unchanged. The exact start date depends on the National Assembly.

Under the new legislation, market liberalization will start on July 1. A protective mechanism will be in place to maintain stable household prices, following principles from the regulated market.

Currently, the Energy and Water Regulatory Commission (EWRC) caps prices by creating an energy mix from different power generation sources. One reactor at Kozloduy Nuclear Power Plant (K-NPP) supplies electricity to the regulated market at around BGN 80 per megawatt-hour, compared to an average household price of BGN 138. The mix includes coal-fired plants and hydroelectric power stations.

After liberalization, K-NPP will sell electricity at market rates, which averaged around BGN 280 per megawatt-hour last month. The resulting BGN 200 difference per megawatt-hour will go to the Energy System Security Fund to compensate consumers, ensuring no increase in household bills.

Stankov said piecemeal efforts and tough commitments undertaken over the past four years have stalled significant funding from the Recovery and Resilience Plan (RRP). Essential reforms under the plan must now be urgently renegotiated, he added.

Stankov said some reforms outlined in the RRP are unrealistic and would impose heavy financial burdens on Bulgarian citizens. "We will not allow this," he stressed, adding that the government aims to renegotiate terms to protect national interests while maintaining good relations with the European Commission (EC).

He noted that Bulgaria has not met its target of an additional 40% reduction in carbon emissions from coal-fired plants. Despite a mild winter in 2024, emissions fell by only 35%. This year, due to colder conditions, coal usage tripled, potentially increasing emissions further.

"Europe never requested this from us. I'm not sure why my colleagues made this commitment," Stankov said. He expressed concern that such targets could threaten not only thermal power plants but also coal mines, which employ around 6,500 people. He believes emission-reduction commitments should be renegotiated nationally, rather than at each heat power plant individually.

Speaking on the agreement between Bulgargaz and Turkish energy company Botas, Stankov noted the Bulgarian public supplier has lacked the financial resources to fulfil its obligations over the past seven or eight months. He described the contract as unfavourable for Bulgaria and said the government is seeking ways to renegotiate its terms. Efforts are underway to use gas transmission infrastructure more efficiently and avoid payments for unused capacity.