EU Commission Criticizes Bulgaria's 'Low' Electricity Prices

Bulgaria ranks among eleven EU member states suffering from deficits in power tariffs, the European Commission believes.

In a report issued last week, the EU's executive body recommends that electricity prices be hiked to address flaws in financing of power system.

A footnote accompanying a table on the "scope of tariff deficit" (p.23) reminds that In Bulgaria, the three largest distribution companies owe a combined 347.6 million lev (7 million) to the state-owned National Electricity Co. (NEK) due to disbursements for subsidies to renewable and combined heat and power generators since 2010.

The reports says Bulgaria, alongside Malta, has "shortfalls of revenues in the electricity system because the regulated integral electricity tariffs for consumers (especially for households) are too low to cover the corresponding costs borne by the utilities," the Commission's assessment reads further.

Bulgaria, in addition, falls in the group of "six countries with the most evident tariff deficit" that also includes Spain, Portugal, Greece, France, and Malta.

The Commission notes that the development of renewable electricity generation should not be pointed as the main cause for tariff deficits, since "the share of [wind and solar power] technologies in Greece is close to the EU average, while in France, Bulgaria and Malta the share was below EU average."

"Electricity prices for household consumers in Bulgaria are regulated. The country has an integral electricity tariff covering all electricity costs including energy generation, transmission, distribution, supply, and support to renewables etc.," the document continues, adding "retail prices for households are in nominal terms by far the lowest in the EU and hardly...