site.btaUPDATED Ombudsman Frowns on Proposed 30% Heating Price Increase in Sofia

Ombudsman Velislava Delcheva expressed strong opposition to the sharp increase of nearly 30% in the price of heating proposed by Toplofikatsiya Sofia, the district heating company in the Bulgarian capital, the Ombudsman's Office reported on Thursday.

"Such an increase is unaffordable for thousands of households that are already under serious financial pressure," Delcheva wrote in a letter to the Chair of the Energy and Water Regulatory Commission (EWRC), Plamen Mladenovski. The public defender stressed that, amid ongoing instability and tensions in the Middle East affecting energy prices, price rises cannot be automatically and uncritically passed on to end consumers.

"It is unacceptable that, in a situation where people's incomes are not growing at the same pace, the cost of basic services should rise sharply and without social balance. Energy security cannot be built at the expense of households' financial insecurity," Delcheva said.

According to her, it is particularly concerning that the proposal comes against a backdrop of serious public dissatisfaction with the quality of service, high heating bills, a lack of transparency in pricing and a resulting sense of unfairness.

Delcheva pointed out that, during the current pricing period, the Sofia district heating company has stopped publishing data on over- or under-recovered revenue resulting from the forecasts embedded in the regulated prices. Furthermore, for seven of the ten months so far in the current pricing period, the company has in fact paid lower prices for natural gas than those projected in the current thermal energy price charged to consumers. Therefore, the Ombudsman urged the EWRC to establish clearly, objectively and accurately the amount of any excess revenue collected by Toplofikatsiya Sofia during the 2025–2026 pricing period and to reflect this in prices from July 1, 2026.

She also called on the regulator to carry out a thorough and transparent analysis of all components of the proposed price, not to approve any increase automatically without clear and publicly justified arguments, and to protect the public interest by ensuring that any burden is distributed fairly rather than placed entirely on citizens.

On March 31, Toplofikatsiya Sofia proposed the EWRC to approve a heating price of EUR 89.63 per megawatt-hour, effective July 1, which would represent an increase of 29% compared with the current price. The utility company also asked for a preferential price and premium for electricity produced through high-efficiency cogeneration.

The company stated that the proposed increase reflects the significant rise in natural gas prices as a result of the escalation of the conflict in the Middle East, and the need for extensive repair works on the heat transmission network and production facilities during the upcoming regulatory period. Additional pressure comes from the overall increase in the cost of raw materials and supplies, it said.