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Bulgaria: EVN opposes new law mandating compensation for power outages

The management of EVN Bulgaria, one of the country’s three major electricity distribution companies, has strongly criticized a recently passed law that mandates financial support for residential electricity customers who experienced power outages between December 21 and 31, 2024. The Bulgarian Parliament recently approved the bill, which requires electricity suppliers to cover the cost of state compensation. Non-compliance with the law could result in a fine of 350,000 euros.

Alexander Sipek, Chairman of the Board of EVN Bulgaria, expressed concerns over the decision, questioning how such a law could be enacted in a European country and how private companies could face penalties without valid justification.

Between December 21 and 31, 2024, prolonged power outages affected several municipalities within EVN Bulgaria’s licensed areas. The new law stipulates that electricity distribution network operators serving affected households must reimburse the Electricity System Security Fund (ESSF) for compensation paid to suppliers. These reimbursements must be made voluntarily within one month of receiving a payment request, supported by documentation confirming the amount paid.

Sipek argued that the law appears to violate both the Bulgarian Constitution and European regulations. He also raised concerns about the potential for double compensation for customers. Sipek warned that the law could harm Bulgaria’s international business climate and investment appeal.

EVN Bulgaria has already submitted its position to the relevant Parliamentary Committees and plans to explore all available legal avenues to challenge the decision.

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