site.btaHousehold Electricity Bills: How New Consumer Support Mechanism Works

The new mechanism, introduced with amendments to the Energy Act, protects households from sharp increases in their electricity bills. Domestic electricity consumers will receive stable and predictable bills, regardless of how the market price fluctuates each month, three electricity distribution companies in Bulgaria,  ENERGO-PRO, Elektrohold, and EVN, explained to BTA.

As of July 1, 2025, companies are required to purchase the electricity needed to supply household customers from the exchange market at market prices. At the same time, according to the Energy Act, end suppliers sell electricity to households at a base price approved by the Energy and Water Regulatory Commission (EWRC), which is lower than the market price. For the difference between the actual purchase price and the base price approved by the EWRC, end suppliers receive compensation determined by a decision of the EWRC from the Electricity System Security Fund, said Elektrohold.

In practice, there is no significant change for customers. They continue to receive their electricity bills and pay them at prices set by the EWRC, explained ENERGO-PRO. Since energy suppliers now purchase energy at market prices rather than regulated prices, if the price of electricity on the energy market turns out to be higher than the price set by the regulator for end consumers, the state will cover the difference instead of the consumer.

The Energy and Water Regulatory Commission has already determined compensation for July to cover part of the electricity costs of household end users.

"Since the price of energy on the energy market in July was higher than the price set by the Energy and Water Regulatory Commission for end users, the average compensation for customers of the three electricity suppliers on the regulated market is over 35% of the consumer's final bill if it had been entirely at the free market price," ENERGO-PRO said.

The companies will indicate on the invoices of household customers the amount of compensation determined by the EWRC for the previous reporting period. The amount of compensation is for information purposes only.

"The compensation is not deducted from the total amount of the electricity bill because household customers have paid for the electricity they have consumed at the prices approved by the Energy and Water Regulatory Commission for day and night tariffs, which are lower than the market prices. In this way, and in line with state policy, end domestic customers in the country are already being supported, as the base price for end customers set by the EWRC saves them the amount representing the difference between the actual market price and the base price of electricity, i.e. the compensation," explained Elektrohold.

In other words, the state has introduced a new mechanism to protect household electricity bills from sharp price increases, commented ENERGO-PRO.

EVN pointed out that in the first month of the mechanism's operation, July, compensation to the companies is needed.

How does the mechanism work in a nutshell? The three suppliers in Bulgaria (ENERGO-PRO, EVN, and Elektrohold) purchase electricity from the market and sell it to households at prices set by the Energy and Water Regulatory Commission (EWRC). When the market price is higher than the price set by the EWRC, which is paid by the customer, the state effectively returns the difference to customers in the form of compensation to the companies from the Electricity System Security Fund.

In this way, end users of electricity will have a predictable bill every month, regardless of how the price on the exchange market fluctuates. The aim of the adopted amendments is to ensure price stability before the actual liberalization takes effect.

In mid-May this year, Parliament finally decided that households would remain on the regulated electricity market for an indefinite period. If these changes had not been made, domestic consumers would have had to enter the free market from the beginning of July this year.

According to the law, the Energy and Water Regulatory Commission will determine the compensation on a monthly basis. At present, there is no official information in the public domain as to when they will be received by the companies from the Electricity System Security Fund.

In connection with the operation of the new mechanism, BTA has also sent written inquiries to the Fund and the Ministry of Energy.