Bulgaria Investigates Surge in Electricity Bills, Over 15,000 Complaints Filed

Sofia, Bulgaria – More than 15,000 customers in Bulgaria have filed complaints regarding unexpectedly high electricity bills, prompting a full investigation by the caretaker government. Energy Minister Traycho Traykov announced the investigation on bTV, stating that any customer found to have been overcharged will receive compensation.

Investigation Underway, Meters Scrutinized

The initial focus of the investigation is to determine the cause of the inflated bills. According to Minister Traykov, the first step was to verify the accuracy of electricity meter readings against the billed amounts. “Once you compare whether the readings correspond to the invoice and it turns out that yes, they do, then we start to suspect the electricity meters,” Traykov explained.

approximately 130 electricity meters have been randomly selected by the regulator for technical and software testing by an independent laboratory. Results were initially expected at the beginning of the week, but have been delayed. Minister Traykov has urged for the results to be released as soon as possible.

Factors Contributing to Higher Bills

Even as the investigation into potential meter malfunctions is ongoing, initial findings suggest that increased energy consumption due to colder weather is a significant factor in the higher bills. Traykov noted a correlation between lower temperatures and increased energy usage, with consumption rising by 33% in Western Bulgaria, 47% in Northeastern Bulgaria, and 41% in Southeastern Bulgaria. This increase is coupled with a roughly 3% price increase compared to the previous summer.

Addressing Oil Prices and Domestic Supply

Minister Traykov also addressed the recent surge in oil prices, linked to geopolitical events, and its potential impact on consumers. He called on Rumen Spetsov, the manager of Lukoil Bulgaria, to balance shareholder rights with the needs of Bulgarian consumers.

Traykov highlighted that Bulgaria primarily relies on domestically produced gasoline, with 90% of its supply coming from the Burgas refinery managed by the state through Spetsov. He believes a responsible manager could protect consumer interests without sacrificing shareholder profits.

Natural Gas Supply and Contracts

Regarding natural gas, Traykov described the situation as tense but not critical for Bulgaria. He suggested slowing down the injection of novel quantities into the Chiren gas storage facility, as current filling levels are at a relatively solid 42% for the conclude of winter.

Bulgaria benefits from a long-term contract with Azerbaijan, providing a stable pipeline supply at a price not directly affected by volatile spot market fluctuations. This, combined with the gas in Chiren, could sustain the country for approximately three months without significant price changes, even without additional liquefied natural gas (LNG) supplies.

Traykov also criticized the existing contract with Turkish company Botash, deeming it unfavorable for Bulgaria. The contract requires Bulgaria to pay approximately $500,000 per day, regardless of capacity usage. Still, he expressed optimism about renegotiating the terms after discussions with Turkish officials.

Building Installation Formula Review

Finally, Traykov acknowledged delays in reviewing the formula used to calculate building installation costs for heating bills. He stated that the previous formula was overturned by the courts due to its complexity and perceived unfairness. He proposed implementing a relatively low default rate unless condominiums decide on an alternative. A decision on this matter is expected by the end of April.