site.btaUPDATED Deputy PM: Cabinet Asked EC to Postpone Bulgaria's Liberalization of Retail Electricity Market

Deputy Prime Minister and Minister of Innovation and Growth Tomislav Donchev said here on Thursday that the Bulgarian government has proposed to scrap Bulgaria's commitment to liberalize the retail electricity market for households and introduce it at a later stage, when adequate mechanisms to protect Bulgarian consumers would be in place. Otherwise, households would be at risk of potential market instability, he added.

The request is among several changes Bulgaria has submitted, including scrapping the 2038 deadline for phasing out coal-based electricity generation, and keeping only the commitment to a general annual reduction of carbon emissions, without regulating this commitment by law, said Donchev.

The Government also proposes an alternative to the separation of ownership of Bulgartransgaz and the Electricity System Operator from the Bulgarian Energy Holding (BEH). The new approach, based on a European Investment Bank report, aims to improve corporate governance and prevent cross-subsidization within BEH.

Donchev said these changes require a revision of the NRRP and will lead to a new request for a second payment under the Recovery and Resilience Facility. He expressed optimism that the revised request will be approved and that the funds will be received in early autumn.

He also stated that efforts will now focus on submitting the request for the third payment within the year, aiming for Bulgaria to receive the funding before year-end. Future requests must be grouped to help the country absorb the remaining funds more efficiently, Donchev added.

On Wednesday, the Government approved and sent the European Commission a request to amend the National Recovery and Resilience Plan and the draft content of the REPowerEU chapter.