EC: Bulgaria should not continue subsidizing energy consumption in the private sector

The European Commission has asked Bulgaria to suspend its current system of state subsidies for the private sector and introduce measures to reduce electricity consumption. This is intended to help Bulgaria reduce its budget deficit, Euractiv reports.

As part of the 2023 European Semester spring package, the Commission urged member states to build strong, future-proof economies and ensure long-term prosperity. Among other recommendations, it advised Bulgaria not to renew its subsidy system, as the country's Association of Employers' Organizations is calling for. The group is seeking the reinstatement of a support scheme that helped the private sector cope with high energy prices. The scheme cost the Bulgarian government almost 3 billion euros in 2022.

The government partly financed the support scheme with huge profits from the state-owned energy company Bulgarian Energy Holding (BEH), which exported record amounts of electricity to neighboring Balkan countries.

A notional bronze medal in electricity exports