The Economic and Social Council adopted at its plenary session a Resolution on a balanced approach to the implementation of the European Emissions Trading Scheme (ETS) and the Carbon Border Adjustment Mechanism (CBAM). In it, the consultative body of employers, trade unions and civil society organizations calls for a revision of carbon policies and measures against high electricity prices. The document states that it is necessary to strengthen the protection of both industry and vulnerable households.
Bulgaria's national positions before the EU Environment and Energy Council should be reviewed in the context of high electricity prices and the threat of a prolonged shortage of natural gas. ESC supports the positions expressed at the government level through a letter signed by ten countries to the President of the European Commission requesting a revision of the EU ETS.
Efforts to adapt to the new operating conditions of the industry and the increasing price pressure on the population should be reflected in a detailed sectoral impact analysis, taking into account the differences between export-oriented production and those with a main market within the EU. The Council emphasizes that the specifics of the regional energy system (more than 30% share of electricity from fossil fuel power plants) cause the price of electricity in Bulgaria to be directly dependent on the market dynamics of greenhouse gas quotas. This leads to price pressure on enterprises, which bear both direct costs for emissions and indirect costs through the price of electricity. The categorical conclusion is that electricity price shocks directly affect enterprises and their employees and have a strong impact on employment in the country.
Household consumers in Bulgaria are already paying the price of the regional imbalance, as from January 1, 2025 they will pay 8.44% higher electricity prices in order to cover the increased delivery costs. In such a situation, there is a high risk of the burden of high prices being passed on to households not only directly through electricity prices, but also indirectly, through increases in consumer goods prices. This will further reduce the purchasing power of Bulgarians, which is already lower than the European average. ESC also warns of a negative impact on workers' incomes and an increase in households in energy poverty.
The Resolution recommends introducing a permanent mechanism for compensation from excessively high prices and reassessing plans for liberalizing the electricity market for households.
The advisory body emphasizes that achieving climate goals must be combined with maintaining economic competitiveness and social sustainability, without allowing inequalities to deepen and the national economy to weaken.
At its plenary session, ESC also adopted an Opinion on "Grey Economy in Bulgaria", in which it notes that in recent years the country has been experiencing a trend towards a gradual reduction in the grey sector, but its share remains relatively high compared to EU countries. In the document, the Council makes a number of recommendations for more ambitious and adequate measures to significantly limit and prevent the shadow economy.