Bulgarian Minister of Energy Zhecho Stankov has reassured citizens that household electricity bills will remain stable despite the full liberalization of the country’s energy market. He explained that a compensation mechanism has been established through the Energy System Security Fund, ensuring that the Ministry of Energy is well-prepared for any potential developments.
Minister Stankov emphasized that household electricity prices will not be impacted by the market liberalization, regardless of when it occurs, which depends on the National Assembly’s decision. The liberalization is scheduled to begin on July 1, and a protective mechanism will be in place to maintain stable household prices, mirroring the current regulated market structure.
At present, the Commission for Energy and Water Regulation (KEVR) controls electricity prices by managing an energy mix from various sources. One of the reactors at the Kozloduy nuclear power plant supplies electricity to the regulated market at around 40.9 euros/MWh, while the average household price is 70.5 euros/MWh. This mix also includes coal-fired and hydropower plants. Once the market is liberalized, NPP Kozloduy will sell electricity at market rates, which recently averaged 143 euros/MWh. To offset the price difference, the Energy System Security Fund will be used to prevent price increases for households.
Minister Stankov also pointed out that bureaucratic hurdles and rigid commitments over the past four years have impeded access to significant funding from the Recovery and Resilience Plan. He stressed the need to renegotiate key reforms under the plan, noting that some proposed reforms are impractical and would impose substantial financial burdens on Bulgarian citizens. The Government remains committed to protecting national interests while working with the European Commission (EC) to seek adjustments to these commitments.
Regarding Bulgaria’s carbon emissions reduction targets, Minister Stankov noted that the country has failed to meet its goal of cutting emissions from coal-fired power plants by an additional 40%. While emissions dropped by 35% due to a mild winter in 2024, colder weather this year has resulted in a tripling of coal consumption, potentially increasing emissions further. He questioned why Bulgaria committed to such reductions, as it was never an EU requirement, and warned that meeting these targets could jeopardize both thermal power plants and coal mines, which employ around 6,500 people. He called for renegotiating these emission reduction commitments at the national level, rather than burdening individual plants.
On the issue of the agreement between Bulgargaz and Turkish BOTAS, Minister Stankov revealed that Bulgaria’s public gas supplier has struggled to meet its financial obligations over the past seven to eight months. He described the contract as unfavorable for Bulgaria and stated that the Government is actively working to renegotiate its terms. Efforts are also underway to optimize the use of gas transmission infrastructure and reduce payments for unused capacity.
