Bulgaria's Opposition Warns Electricity Costs Could Push Up Prices Next Week

Businesses could begin raising prices on goods and services as early as next week if electricity cost compensation for non-household consumers is not provided monthly, GERB MP Zhecho Stankov warned from the National Assembly rostrum.

Stankov said his parliamentary group had been pressing for action on energy prices for more than a month, but it had taken that long for its proposal to be included in the parliamentary agenda. Earlier this week, GERB submitted a draft resolution calling for compensation for businesses facing high electricity costs.

Addressing Parliament Speaker Mihaela Dotsova, Stankov questioned why the proposal had not been sent to the Energy, Economic or Budget committees by the end of the previous working day. He argued that leaving the document unassigned would do nothing to lower electricity prices.

The average electricity exchange price in October reached 232 euros per megawatt-hour, he said, marking an increase of more than 150%, or two and a half times, compared with the summer months.

Stankov criticized lawmakers for what he described as their lack of attention to the issue, stressing that high energy costs affected households, business owners and small and medium-sized enterprises across the country.

Energy-intensive industries are also struggling with the higher prices, he said. Stankov accused the ruling majority of failing to propose measures to curb inflation by addressing electricity costs, despite GERB having waited for it to take action.

The former energy minister said his group's proposal would restore a compensation mechanism that had proved effective in 2025, when electricity prices were also high. Under the proposed scheme, non-household consumers would receive compensation covering 100% of electricity costs above 92 euros per megawatt-hour.

Stankov said the threshold was equivalent to approximately 180 leva per megawatt-hour, the level used under the compensation program in place in 2025.

Although a compensation program is currently active, he argued, it does not give businesses certainty about future payments, which remain unclear and could be delayed for as long as 10 months.

He pointed to the financial pressures faced by small businesses, including bakeries, grocery stores and hair salons, which must pay wages and electricity bills every month and replenish their supplies weekly.

“However, a small bakery, a grocery store, or a hair salon pays its staff wages month by month, covers its electricity costs month by month, and purchases its supplies week by week. If electricity costs are not compensated on a monthly basis, the impact will be felt on store shelves as early as next week,” Stankov warned.

He said that unless the draft resolution is examined by a parliamentary committee or put to a vote in the plenary hall this week, and a clear approach is adopted to reassure businesses, companies will face utility bills next week with strict payment deadlines.

The proposal provides for monthly compensation covering electricity costs above 92 euros per megawatt-hour. Stankov said this would make business expenses more predictable and help contain inflation, limiting price increases for goods and services, particularly essential products sold in stores.

Separately, PP MP Radoslav Ribarski warned from the parliamentary rostrum that Bulgaria's energy sector was facing a serious problem ahead of winter, which he said could not be explained solely by international developments, market fluctuations or inherited liabilities.

Ribarski attributed the difficulties to the absence of a consistent energy policy, delays in decision-making and insufficient protection for businesses and households.

“The ruling majority speaks of stability, yet businesses and the economy are faced with increasingly unpredictable bills. They talk about support, but compensation has been deferred until the end of next year. You speak of energy security, yet you leave too many questions unanswered - and right before the onset of winter,” Ribarski said.

He said the uncertainty was leaving small businesses with three options: increase the prices of their products, accept lower profits or dismiss employees. In some cases, businesses were being forced to take all three steps, he added.

For households, Ribarski said, the consequences were higher expenses for food, services and essential goods.