site.btaRegional Development Ministry Orders Analysis of Water Companies' Investment Programme, Business Plans

The Minister of Regional Development and Public Works, Ivan Ivanov, has instructed the Bulgarian Water and Sewerage Holding EAD to do an analysis of the investment programmes of the regional water companies and their business plans, which serve as the basis for operators to justify and submit their requests to the Energy and Water Regulatory Commission. This transpired from a hearing of Ivanov in Parliament, which looked at " unjustified widespread increase in water prices in most populated areas of the country and the government's targeted policy of including all municipal water companies in water associations".

The hearing was also attended by holding company's CEO Irena Georgieva and the Chair of the energy and water regulator, Ivan Ivanov.

Water services have become more expensive in Sofia and most regions of Bulgaria since the beginning of the year, following a decision by regulator. For 16 water companies, prices have increased by up to 5% from the rates for 2024. For 13 companies the increase ranges between 5% and 10%, and for two companies, the increase exceeds 10%: in Sliven (by 19.8%) and in Berkovitsa (by 12.8%). In Sofia, customers are now paying 4.9% more than in 2024 , or BGN 3.69/cu m, including VAT.

"It is ill-grounded to talk about unjustified increase in prices, but the question remains as to how fair it is for consumers, and after the analyses, the Ministry of Regional Development and Public Works will present a position," the Minister said. 

The issue of water pricing is "extremely serious", to use the Minister's words, and he said it will be a key focus of his team’s work.

Water prices are proposed by the water companies and are determined annually by the regulator. The regulator's decision is an administrative act that includes a detailed justification and is also subject to judicial review, the minister emphasized.

A review of the 2025 prices of water companies with state participation in their capital leads to the conclusion that nowhere do prices exceed the level of social affordability, as defined by the Water Supply and Sewerage Services Regulation Act, the Minister said.

He added that three companies lowered their water prices. Some water companies, by a ministerial order, have not taken advantage of the regulator-approved price increase. Once a new price is approved by the regulator, water companies introduce it by order for the respective year and designated service area. For this reason, operators that have not issued such orders will await the analysis ordered by the Regional Minister.

Regarding the consolidation of the water sector, Ivanov said that it is part of the reform policy initiated in 2009. Consolidation is a requirement for obtaining European funding, which is currently the only source available, the Minister explained. He pointed out that if these principles and policies are changed, there is a risk of losing European funds, again emphasizing that they are "the primary - if not the only - source of funding for the rehabilitation of the water supply and sewerage network." He recalled that, according to the national investment plan for water companies for 2021–2027, the required investments to comply with EU directives are over BGN 6 billion for urban wastewater treatment, over BGN 7 billion for drinking water quality, and over BGN 19 billion for upgrading the existing water infrastructure. Ivanov pointed out that these financial needs cannot be covered by the state budget alone, especially "in the conditions of limited resources and without European funds."

According to the Minister, the key focus should be on improving water infrastructure, improving the financial condition of water companies, and increasing the quality of the services provided.