Bulgaria: What Taxpayers Need to Know After the Euro Changeover
The annual campaign for filing personal income tax returns under Article 50 of the Personal Income Tax Act is underway
As of July 1, a new pricing period begins for household electricity, heating, and hot water in Bulgaria. The Energy and Water Regulatory Commission (EWRC) has finalized its decision: the average increase in electricity prices for domestic consumers across the country is 2.58%, while heating and hot water services will rise by an average of 4.5%.
The most significant rise in electricity prices affects customers of EVN, where rates will go up by 3.6%. Energo-PRO users will see an increase of 2.5%, and Electrohold customers will face the smallest hike at 1.8%. In real terms, EWRC Chairman Plamen Mladenovski offered examples: if a household’s monthly electricity bill is 60 leva, the increase will range from around 1.08 leva (Electrohold) to 2.16 leva (EVN).
The new electricity prices will remain in effect until June 30, 2026. According to Mladenovski, the 2.58% increase is modest and aligns with national inflation trends. He stressed that the commission’s intention is to maintain price stability while gradually moving toward a fully liberalized electricity market. Households, he said, should feel confident that their energy bills will not see any sudden jumps.
Mladenovski explained that the initial proposed electricity price hike was 4.62%, but it was reduced through a combination of three key factors. First, the surcharge imposed on end suppliers was kept at the same level as the previous year, avoiding an additional cost increase. Second, updated consumption data for March, April, and May from the distribution companies led to downward adjustments in the tariffs. The third and most decisive factor was the pricing results from recent auctions on the Bulgarian Independent Energy Exchange, which allowed the baseline price to be lowered from 144 leva to 140.03 leva per megawatt-hour.
Turning to district heating, the price increase varies by region. The lowest adjustment is in Varna at around 1%, while Sofia residents will see a 6% increase. Most other heating utilities will raise prices by about 5%. Heating will be most expensive in Razgrad, where the cost of a megawatt-hour will surpass 138 leva, followed closely by Sofia at 134 leva. Cities like Pleven, Ruse, Sliven, and Burgas will maintain lower rates, staying under the 100 leva per megawatt-hour threshold.
Mladenovski addressed media questions about whether the reduction in the initially proposed electricity price increase was politically influenced. He firmly denied any such motive, asserting that EWRC is not a political body and that its focus remains on balancing the interests of both consumers and energy providers.
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