Financial and business news from Bulgaria

Small business expires to choose a supplier of electricity on the free market

In June 2020, amendments to the Energy Act obliged small companies in Bulgaria to switch from a regulated electricity market to a free market, ENERGO-PRO recalled. In order for the process to go smoothly, a transitional period was ensured from 1 October 2020 to 30 June 2021, during which the small business could navigate the situation and proceed to choose a supplier at freely agreed prices. During this period, the unselected supplier is supplied with electricity under a type contract, but in case they do not submit an application for supplier selection by 10 June 2021, according to the legal provisions they will switch from July 1 to the Provider of last resort. Its function is not to remain without electricity supply customers who do not have a supplier for one reason or another. Since 1 October last year, one third of the non-household customers of ENERGO-PRO Sales have already made their choice and entered the market at freely agreed prices, for 45,000 companies in northeastern Bulgaria this step is still pending, the electricity distribution company said.
Liberalization in the energy sector began back in 2013, when the big companies in the country came out on the free market. In the next few years, the free market principle for electricity supply to households is to be introduced. The expectations are that legal changes in this direction will stimulate competitiveness between suppliers, leading to better prices and more adapted conditions for customers.