site.btaRise in Water Prices, Electricity Bills - Purposefully Delayed or Gradually Introduced?

While the relevant institutions are investigating complaints and reports from consumers in the country that they have received very high electricity bills for December and January, water and sewerage companies have announced that the change in their service prices will take effect on March 1. The decision of the Energy and Water Regulatory Commission (EWRC) was taken in December but did not come into force at the beginning of the year, mainly in the name of the euro's smooth introduction. The change in water prices in different settlements ranges from a decrease of nearly 12% to an increase of nearly 14%.

Caretaker Prime Minister Andrey Gurov convened a meeting with the relevant ministers on Friday, after which he stated that the issue of high electricity bills and rising water prices was being exploited for political purposes and to shift responsibility. Gurov noted that several electricity price increases had been approved last year and that higher consumption during the winter months had naturally led to higher bills. These decisions were made before the current administration took office, he said. According to him, water price increases were unlawfully delayed for three months, “only to explode in the hands of the caretaker Cabinet."

According to caretaker Minister of Regional Development and Public Works Angelina Boneva, water prices in Bulgaria are market-based and were raised in a coordinated manner as of February 26. "I find it interesting who held prices back until now, who held them back until Thursday and, so to speak, who coordinated their increase while I was in Brussels," Boneva commented. She said she had received reports from the Bulgarian Water and Sewerage Holding but had not yet had time to review them. The EWRC has also provided data to the minister. Boneva said that once she reviews the full picture, she will present more details at a news conference.

Caretaker Energy Minister Traicho Traikov said that a large part of the higher electricity bills are due to increased energy consumption. “At the same time, we must check whether electricity meters are reporting accurately. That is why there is an additional inspection by an independent laboratory and by the Ministry of Energy to verify the condition of meter cabinets and seals,” Traikov said. According to him, EWRC data so far show that violations have been found in only a very small share of the cases examined. Traikov added that the full report from the regulator is expected in early March.

Economy and Industry Minister Irina Shtonova said that her Ministry and the Commission for Consumer Protection (CCP) have requested information regarding electricity and water prices. The three electricity distributors have until Monday to provide information, and the Ministry will give details at the first opportunity. 

MPs also commented on the issue of high electricity bills on Friday. 

Nikolay Nankov MP of GERB-UDF told journalists that the Bulgarian Water and Sewerage Holding Chairman Lozko Lozev has coordinated water price hikes in Bulgaria. "He is currently a regional coordinator for Continue the Change – Democratic Bulgaria (CC-DB) in Haskovo, while being Chairman of the Holding," Nankov said. He said he obtained the information from official correspondence of over 30 directors of water institutions. 

Bozhidar Bozhanov, Deputy Floor Leader of the CC-DB, called for the resignation of the Water and Sewerage Holding head, citing rising water prices and alleged conflicts of interest at the highest levels of management. Irena Georgieva-Deneva is wife of Denyo Denev, who currently serves as acting chair of Bulgaria's State Agency for National Security. According to Bozhanov, such concentration of influence over both water infrastructure and national security raises serious concerns about governance and accountability. Bozhanov rejected claims that the caretaker government is responsible for the water price hikes, arguing that responsibility lies with the Water Holding, water utilities, the EWRC, and previous regular governments that approved the current pricing framework. He explained that water prices are set by individual water companies, while maximum thresholds are determined by the regulator.

The issue of an impending water price hike came to light on February 26 when CC-DB and representatives of the previously ruling coalition traded barbs over the matter.

Over the last weeks, citizens have held protests against the high electricity bills. The latest protest was in Plovdiv (South Central Bulgaria) on Thursday. On February 9, citizens protested in front of the local electricity operator's building in Shumen (on the Danube). There was also a protest in Silistra about two weeks ago. Residents of the southeastern village of Kozarevoare preparing a collective complaint on the grounds of significantly inflated electricity bills for December and January.