The State Will Cover Up to 50% of Electricity Costs for Businesses

Bulgaria is the first country in the EU to introduce financial compensations for energy-intensive industries due to rising electricity prices. The decision is expected within a few weeks when the European Commission must notify the measure, Energy Minister Traicho Traikov announced.

According to him, the compensations will cover up to 50% of the electricity price when it exceeds 63 euros per megawatt-hour. The measure will be retroactive from July 1, 2025, which means that companies in these industries will have significant comfort in offering their products at prices that do not stimulate inflation, Traikov added.

Compensating electricity prices for energy-intensive industries will also favorably impact other sectors of the economy that use their products. This is an additional step in the governments' measures to limit inflation growth caused by the war in the Middle East. The measure will support businesses by helping maintain their competitiveness in the current critical situation.

The news about the upcoming EC notification comes in response to demands from the Bulgarian Chamber of Commerce, the Confederation of Employers and Industrialists in Bulgaria, and other employers' and industry organizations to accelerate the process of introducing urgent compensations for high electricity prices for businesses. A few days ago, they sent a letter with such a demand to the ministers of energy and foreign affairs.

Bulgaria's energy-intensive industry accounts for approximately 26% of GDP and plays a key role in employment, regional development, and strategic value chains, as stated in the letter. Businesses insist that in the current situation of high and volatile energy prices, the lack of an adequate compensation mechanism creates a risk of losing competitiveness, limiting production, and shifting investments outside the country and the EU.

Source: Plovdiv24