site.btaParliamentary Committee on Energy Proposes Postponement of Electricity Market Liberalization for Households

The National Assembly’s Committee on Energy adopted at first reading on Tuesday two draft amendments to the Energy Act that postpone the liberalization of the electricity market for household consumers. In support of the bill tabled by MPs from BSP – United Left, nine members of Parliament voted in favour, two were against, and there were no abstentions. The proposal envisions a 2-year postponement of market liberalization for household consumers.

The second bill, tabled by MPs from There Is Such a People (TISP), proposes a 5-year postponement. It also received nine votes in favour, two against, and no abstentions. The Committee on Energy rejected the proposed changes from Vazrazhdane, which called for a 10-year delay in liberalization for household consumers.

The meeting was attended by Energy Minister Zhecho Stankov and Energy and Water Regulatory Commission Chair Plamen Mladenovski.

Stankov briefly informed the MPs about the negotiations on the topic with the European Commission, which he described as difficult but constructive. "It has been agreed that there will be no set deadline for when to liberalize the market – the National Assembly will choose the date,” Stankov explained.

He also provided details about the model for setting regulated prices during the approved postponement period. The decision will rest with the Council of Ministers, based on calculations from the Energy and Water Regulatory Commission. The price for household consumers will be set for the regulatory period from July 1, 2024, to June 30, 2026, and any price differences during this time will be compensated by the Electricity System Security Fund.

The Energy Minister added that work continues on clarifying the details of how final household consumers will be supplied with electricity, noting that a decision is expected within days. The National Electricity Company will not act as a public supplier but is expected to provide the energy, taking into account the stability of the electricity market and system.

The model is expected to be finalized by the end of the week, including a financial mechanism to ensure stability, Stankov noted. Approval of the mechanism by the European Commission is also awaited, with negotiations over the next two days described as critical, Stankov noted.