Bulgaria's Ministry of Energy proposes establishment of energy communities

Bulgaria

A bill amending and enhancing the Energy Act, proposed by the Bulgarian Ministry of Energy (MoE), has entered the public discussion stage. The MoE published their proposed draft amendments to the legislation, which transposes the provisions from Directive (EU) 2019/944.

The primary objective of the proposed bill is to facilitate the liberalisation of Bulgaria's energy market. For this to be achieved, the draft suggests several critical changes to the existing Act. The first step would be eliminating the National Energy Company’s role as the Public Supplier, which would promote competition by creating an environment conducive to private participation. The second step would be to improve the consumer market within the sector.

For this to be achieved, the bill proposes adding a new term and several provisions, including the creation of ‘energy communities’ as a capable party regarding electricity-related transactions. These communities would empower household users to maintain their rights as end-users while simultaneously enjoying greater benefits through their participation in the energy transition. Energy communities can take any form of a legal entity, providing all individuals with opportunities to collaborate with commercial companies and play a greater role in the liberated energy market. This approach removes regulatory and administrative obstacles, allows communities to form more easily and addresses issues related to vulnerable customers and ‘energy poverty’ discrimination.

Additionally, stakeholders appear to welcome the establishment of energy communities within the law since many entities, particularly firms, are expected to engage in them. Furthermore, the bill’s draft, which validates citizens in ‘energy poverty’, is a necessary and progressive change. Recognising the role of polluting stakeholder and placing them at the forefront of the energy transition will enable them to initiate positive change and reap the benefits of efficient and clean energy.

For more information on the draft Energy Act and the business opportunities its changes might provide, contact your CMS client partner or these CMS experts: Kostadin Sirleshtov and Borislava Piperkova.