Comment by Emilia Milcheva:
High electricity bills and new water prices from March 1 angered Bulgarian citizens in the first days of the caretaker government. However, the dissatisfaction is not the result of a one-time decision, but of years of postponed reforms and a lack of consistent policy in the energy and water supply sectors. However, many linked the increase in prices to the introduction of the euro - a version further fueled on social networks.
Due to the attacks on the caretaker government, which began on its first day, Prime Minister Andrey Gyurov described the criticism as “political insinuations“ and transfer of responsibility, and the explanation of the authorities was reduced to higher consumption and already made decisions to increase the price.
In 2025, electricity became twice more expensive for households - from January 1, by an average of 8.42%, and from July 1, a new increase by an average of 2.58%. In addition, from July 1, 2025, electricity distribution companies (EDCs) have already been buying electricity on a market basis through the exchange. The Energy and Water Regulatory Commission (EWRC) approved the requests of the water and sewerage operators for more expensive water on December 19 last year - a week after the government of Rosen Zhelyazkov resigned.
The Hybrid Model
After more than 2,200 complaints were filed due to high electricity bills, the well-known institutional reflex followed - inspections. The Consumer Protection Commission (CPC) enters the electricity distribution companies (EDCs), the Energy Regulatory Commission (EWRC) inspects them, and the Ombudsman does the same. In the first two GERB governments, Prime Minister Boyko Borisov first beat the drum that there was sabotage and an attempted coup against him, then "sent" the prosecutor's office and the tax authorities to the offices of the EDCs.
Former Minister Zhecho Stankov indicated a record consumption of 8,200 megawatts. Acting Minister Traycho Traykov spoke of a possible "software glitch". And the results of the inspections so far show minimal violations. However, the essential problem is not an accounting error or minor temperature differences. Bulgarian energy works in a hybrid model – part of the electricity for households is purchased on the free market through the exchange, but the final price is determined by the KEWR.
The market is not fully liberalized, but it is not fully regulated either. Fluctuations in exchange prices partially affect bills, and the difference between the exchange and the approved price is covered by the “Electricity System Security” Fund (ESSF).
At the same time, suppliers buy electricity at different prices in real time, and effective mechanisms for protecting the energy poor are lacking. (Although in 2023 the long-delayed definition of “energy poverty” was finally included in the Energy Law, it has not yet been decided who the energy poor households are and how they should be supported.)
For this half-hearted result, society is “obligated” to legislators. And the situation for citizens is aggravated by the ineffective control of regulators and opaque electricity invoices. Households still do not understand how the final price is formed and how the surcharges are calculated.
Without strategies, but with compensations
The high electricity and water bills are the result of years of postponed reforms and a lack of strategic management in the energy and water supply sectors. Bulgaria's last energy strategy expired in 2020 and there is no new one. The final of the last strategy for the development and management of water supply and sewage was at the end of 2023. The systems are developing spontaneously, under the pressure of lobbying interests and their political representatives.
Subsidization in energy distorts the market. According to data from “Greenpeace” energy compensations for non-household consumers in Bulgaria in the period 2021-2023 have reached €3.38 billion.
In 2025, Bulgaria again postponed the liberalization of the electricity market - indefinitely, after doing so for more than a decade with various excuses. Several energy ministers explained that in this way household consumers would not be exposed to high prices on the free market. But in reality they bear them, since at high prices on the exchange the pressure is partially transferred to the bills. Network fees, which are also growing, supplements for RES and FSES also burden them.
In addition, in the period December-February, Unit Six of the “Kozloduy” NPP - the source of the cheapest energy, stopped working several times after scheduled repairs. In December alone, the unit stopped twice, and it stopped in February. “Yes, Bulgaria” stated that he would report the matter to the prosecutor's office due to the repetition of the stops after repairs.
The results of the bill checks will most likely confirm the hypothesis of increased consumption and some other reporting for a longer period. But the problems in the energy sector will remain for next winter.
Water bills
The new water pricesWe continue the change (PP), which came into force on March 1, also focused attention on the Water Supply and Sewerage Holding. In Pleven, where they were subjected to a heavy water regime in 2025, they went on a protest. They will have to pay 7% more per cubic meter of water.
And while “We continue the change” demanded with a signature the resignations of the EWRC and the CPC, whose members were elected by GERB, BSP and “There is such a people” and DPS-NN, their coalition partner “Democratic Bulgaria” focuses on the executive director of the Water and Sanitation Holding. The motive of the DB is that Irena Georgieva is the wife of the acting chairman of the National Agency for Water and Sanitation Denyo Denev and there should be a check for conflict of interest. “This is a huge power, a huge toolkit in the hands of people who in the past and now fulfill Peevski's wishes”, commented on this occasion the co-chairman of “Yes, Bulgaria” Bozhidar Bozhanov. Georgieva was elected head of “Bulgarian Water and Sanitation Holding” EAD in August 2022 by the official cabinet of President Rumen Radev - and with the signature of the then regional minister Ivan Shishkov.
GERB responded to the accusations of the official government that the increase in the price of water was deliberately made now, by blaming a PP cadre. According to GERB deputies, the person who coordinated the increase in water prices with the managers of the water supply companies is Eng. Lozko Lozev, Chairman of the Board of Directors of the Water Supply and Sewerage Holding and Regional Coordinator of the PP in Haskovo. He was appointed to this position in September 2023 by the cabinet of Nikolay Denkov (PP).
To date, it is unclear how the holding spends public funds, and the problems with water supply and weak financial control over the water supply and sewerage operators continue. Water losses for most of these operators are over 50%, in some regions it exceeds 70%.
To reduce the pressure on citizens, strategies are needed to be implemented and protective instruments for the most vulnerable groups. Without them, high bills for poor public services will remain part of the everyday life of Bulgarians, regardless of who is in power.