Bulgaria’s energy sector stands at a critical crossroads, hindered by distorted price regulations, cross-subsidisation, and the lack of a targeted social support system. The current state-controlled model protects inefficient, carbon-intensive producers, deters innovation and private investment, and fails to support vulnerable consumers – while subsidising high-consumption households and wealthy corporations. This undermines energy security and delays the modernisation of the electricity grid.
The path forward lies in a fair and comprehensive liberalisation of the electricity market, supported by smart grid digitalisation, intelligent metering, and well-designed social support mechanisms. This transition must be gradual, with clear safeguards to protect vulnerable groups from price shocks without compromising market competition. Transformation funding can be drawn from the Security of the Electricity System Fund and European green transition instruments. Liberalisation should not mean withdrawing state involvement, but rather redefining it—ensuring the state acts as an impartial regulator, fostering a fair, competitive, and sustainable energy future.
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