site.btaParliament Grills Minister, Regulator Chair and Water Holding CEO over Recent Increase of Water Prices and Sector Consolidation

Parliament Wednesday held a hearing to look into problems in the water sector and the most recent increase of water prices. Focused on the rising price of water in most settlements across the country, the session was held on a motion of MPs from the nationalist party Vazrazhdane.

That party sees “unjustified widespread increase in water prices in most populated areas of the country and a targeted government policy of forcing all municipal water companies to join water associations".

The prices of water and sewerage services have increased in Sofia and most regions in the country since the start of 2025. Sixteen regional operators raised the prices by less than 5%. Another 13 operators raised the prices between 5% and 10%, and two companies, in Sliven and Berkovitsa, raised their prices by 19.8% and 12,8% respectively.

Water prices are proposed by the water companies and are determined annually by the regulator. 

During the hearing, the MPs grilled Energy and Water Regulatory Commission (EWRC) Chair Ivan Ivanov, the Minister of Regional Development and Public Works, also Ivan Ivanov, and the CEO of the Bulgarian Water and Sewerage Holding EAD, Irena Georgieva. 

The regulator chair explained to the deputies the pricing mechanisms in the water sector. He said that there are three insurmountable factors when the price of water and water services are determined: a five-year agreement for 15% annual wage raise in the water sector, inflation, and the price of electricity.

Ivanov said that the combination of these factors leads to an average price increase of 4.5%. He added that the water price set by the EWRC is a cap, not a mandatory price. Water and sewerage companies can choose to reduce it, if they have economic and financial reasons.

The Minister of Regional Development said that he has instructed the Bulgarian Water and Sewerage Holding 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 price proposals to the water regulator.

He said it is ungrounded to talk about unjustified increase in water prices, but admitted that the question remains as to how fair it is for consumers.

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 also told the MPs that one of the main issues is water theft in various forms.

Bulgarian Water Holding CEO Irena Georgieva explained that investment in the water distribution system is financed solely through revenue from water services and directly affects water prices.

Georgieva said that 69% of the water distribution system managed by the holding's subsidiaries is made up of pipes designed to last 30-35 years. However, the majority of these pipes were installed in the 1970s.

During the hearing, there was a heated exchange between Vazrazhdane and the Regional Development Minister (followed by a shouting match between Vazrazhdane and Continue the Change - Democratic Bulgaria) over the Minister's remark that Bulgaria would lose hundreds of millions in EU funding if Vazrazhdane's ideas for the water sector are carried through.