Electricity prices - Bulgaria

Bulgarian Electricity Market

Electricity Generation by Source

Bulgaria’s power generation mix has been dominated by nuclear, coal and renewables. In 2023, the only nuclear plant (Kozloduy) supplied roughly 40–43% of generation, lignite-fired coal about 29%, and renewables (hydro, solar, wind, biomass) about 25–28%. Specifically, hydropower produced ~3.13 TWh (7.8%), solar ~3.25 TWh (8.1%), wind ~1.58 TWh (4.0%) and other renewables ~1.87 TWh (4.7%). Natural gas contributed only ~1.94 TWh (~4.8%). Compared to 2022, coal output plunged (by roughly half) as gas/electricity prices fell: in 2022 coal had produced over 50% of Bulgaria’s electricity, versus 29% in 2023. Conversely, solar grew explosively: solar output in 2023 was 141% higher than 2022, and wind output rose ~6%. Renewables overall are rising, driven by new wind and solar capacity. Bulgaria’s draft 2030 energy plan targets ~42% of electricity from renewables, up from about 25% now, reflecting policy to replace coal with green sources.

• Nuclear (Kozloduy) – ~16.16 TWh in 2023 (≈40–43% share). Kozloduy is the single largest generator, with output fairly stable year-to-year.
• Coal (lignite and hard coal) – ~11.73 TWh in 2023 (≈29% share). Coal generation has fallen sharply – ~21% drop overall from 2022 to 2023 – as market prices and policy favor cleaner energy. In 2022 coal had exceeded 50% share. Plans call for phasing out coal plants by 2038.
• Renewables – ~9.84 TWh in 2023 (≈25–28% share), including 3.13 TWh hydro, 3.25 TWh solar, 1.58 TWh wind, 1.87 TWh biomass/waste. Solar output doubled in 2023 as many new PV plants came online, and wind output grew ~6%. Hydropower is seasonally variable but on average ~8% of generation. The renewable share (including hydro) is recovering after stagnation; official targets now aim for 42% of power from renewables by 2030.
• Natural Gas – ~1.94 TWh in 2023 (≈4.8% share). Gas-fired generation is relatively low (recently around 5%) but can flexibly back up the system.
• Other (oil, etc.) – negligible (oil-fired <0.3% in 2023).

In summary, nuclear and coal still provided ~70% of power in 2023, but the trend is toward declining coal use and rising solar/wind. (For example, coal’s share fell from >50% in 2022 to 29% in 2023, while solar more than doubled.) New renewables and grid upgrades (including links to Romania and Greece) are expected to further shift the mix toward green energy in the 2020s.

End-Customer Price Formation

Bulgarian electricity bills combine several components: energy supply cost, network (transmission and distribution) fees, and taxes/levies. Both household and business customers ultimately pay for (a) the electricity itself (supplier cost or market price), (b) the use of the grid, and (c) various taxes and surcharges. Below are the main ingredients:

• Energy supply price:

  • Households: Remain largely on regulated tariffs set by the Energy and Water Regulatory Commission (EWRC) for each distribution zone. The “supply” portion covers generation and supplier costs. For small consumers (groups D1–D5), the KEVR-regulated energy price (net of taxes) was about 0.201 BGN/kWh for the lowest-consumption D1 group in H1 2024. (This price is uniform across a zone; EWRC approves any changes semi-annually.)
  • Business (non-households): Operate on the liberalized market. The key cost is the wholesale market price – effectively the hourly “day-ahead” exchange price on IBEX or the price of a bilateral contract. Businesses purchasing on the free market pay spot or negotiated contract prices (often close to IBEX day-ahead). For example, non-households see each kWh charged at the hourly IBEX price times consumption.

• Transmission fees: The use of the national transmission grid (Operated by ESO) is charged per kWh. KEVR sets a single transmission tariff (about 0.01366 BGN/kWh for transmission, 0.00085 BGN/kWh for grid access as of early 2025). This fee appears on every bill (and is uniform nationwide).

• Distribution fees: Each distribution company (EVN, CEZ, Energo-Pro) has a region. Households and businesses pay a distribution tariff (per kWh and fixed components) set by EWRC. Distribution costs typically dominate the network portion. For example, for household low-voltage consumers (groups D1–D5), distribution charges comprise ~76.7% of the total network fee, versus ~23.3% for transmission. These fees fund grid operation and losses.

• Supplier margins and services: On the liberalized side, traders add a small margin or fee for balancing and retailing. On regulated supply, the cost-recovery is implicitly built into the KEVR tariff.

• Taxes and levies: All customers pay VAT (20%) on the total bill. In addition, Bulgaria imposes a set of surcharges on electricity: notably a renewable support fee, a capacity (reserve) fee, an environmental protection fee, and (historically) a nuclear waste fee. For instance, NSI data for early 2024 show a household VAT charge of ~0.1351 BGN/kWh, plus ~0.0636 BGN for RES promotion, 0.0397 BGN for capacity, and 0.0397 BGN for environmental protection. (The exact levies are set by law and currently total a few stotinki per kWh.) Business customers also pay VAT and the same kinds of surcharges; some businesses may face a statutory excise tax on electricity (though this is typically minimal or zero).

• Other charges: A small reactive energy compensation may appear if industrial loads draw lagging power. Meters and administrative fees (e.g. EVN charges ~4.99 BGN/month per meter for its dynamic tariff) are also possible.

In short, a typical business bill is largely driven by the wholesale energy cost (IBEX price) plus network fees plus 20% VAT. A household bill uses a KEVR-set energy price plus similar network fees and VAT/surcharges. A simplified formula:

Final kWh price ≈ SupplyPrice + (TransmissionFee + DistributionFee) + VAT + Levies.

For example, an energy-monitoring study notes that business bills add the network access, transmission, distribution, excise (if any), reactive-energy fee and VAT on top of the base energy price.

Dynamic (Hourly) Tariffs – Concept and Regulation

“Dynamic tariffs” are electricity contracts where the price varies by hour in line with market conditions. In practice, a dynamic tariff means the customer pays the actual hourly day-ahead exchange price (e.g. IBEX “day-ahead” price) for each kWh consumed in that hour, plus a fixed supplier markup or fee. This contrasts with flat “single-rate” pricing. Dynamic pricing gives consumers an incentive to shift usage into low-price periods (typically midday or windy nights) and away from peak-price periods.

Under EU law (Electricity Directive 2019/944) and Bulgarian implementation, every supplier must offer consumers the option of a dynamic-price contract (often called “time-varying” or “TOU” pricing). In Bulgaria’s Energy Act (amended 2023), this is formalized: Licensed energy companies may offer dynamic-price electricity contracts, and must inform customers of the costs and risks involved. Customers with a smart meter have the right to choose a dynamic-price contract with at least one supplier. Switching to such a contract requires the customer’s explicit consent.

Dynamic tariffs are typically linked directly to IBEX (BNEB) prices: a supplier will calculate each hour’s price as “IBEX day‑ahead price + supplier’s markup”. For example, Synergon Energy describes its dynamic plan as “price = BNEB price (hourly) + supplier’s markup”, where the markup covers forecasting and balancing costs. Similarly, EVN Bulgaria’s “Flex” plan charges the daily average IBEX price plus a fixed surcharge (e.g. +5.30 BGN/MWh initially, later +7% of the exchange price). Because of these hourly fluctuations, peak-hour prices can be very high (and even negative when renewables flood the grid).

Bulgarian regulation allows these variable contracts, and EU rules encourage them to better reflect real-time supply/demand and renewable availability. They are often promoted as a way for savvy consumers (especially businesses) to save money by load-shifting. In practice, dynamic tariffs require remote (smart) meters and typically stipulate long contract terms (1+ year). Suppliers must also ensure clear billing: EU law requires transparent monthly statements with consumption-by-hour data.

Providers and Dynamic-Tariff Offers

Most dynamic-tariff products in Bulgaria are currently aimed at non-household (business) customers, though interest is growing in residential time-of-use plans. Key electricity retailers offering dynamic/IBEX-indexed plans include:

• EVN Bulgaria (Energy Vtora) – EVN’s “Flex” tariff (for businesses) is an hourly-priced product. Under Flex, each kWh is billed at the IBEX day-ahead price, plus a set add-on: for the first 6 months an add-on of 5.30 BGN/MWh (0.00530 BGN/kWh), and thereafter 7% of the IBEX price (with a floor of 25.30 BGN/MWh). EVN also charges a 4.99 BGN/month meter fee for Flex. This plan is explicitly targeted at business clients (especially medium/large consumers).

• Synergon Energy – Markets a “Dynamic Price” (indexed) product. As described by Synergon, the contract price is: “IBEX (‘Den Napred’) price (hourly) + a supplier margin”. The supplier’s margin (“markup”) is calculated based on the customer’s load profile and forecasting costs. Synergon’s marketing emphasizes real-time transparency (IBEX publishes prices hourly on its website) and the potential savings for customers who can shift peak usage. This product is sold to industrial and commercial clients.

• ALFA Energy (AES Bulgaria) – Offers IBEX-indexed contracts under the name “Алфа Интелигент”. Its literature describes “fixed price” versus “dynamic price” options; the latter “is indexed to the IBEX day-ahead segment”. (ALFA targets small and large businesses with such indexed plans.)

• Entra Power – The electricity retail arm of Eurohold, Entra also provides “dynamic index” contracts to corporate clients, similarly tied to IBEX prices plus a markup. (Eurohold/Entra has marketed IBEX-indexed offers to industry.)

• Traditional utilities (CEZ Bulgaria, Energo-Pro Bulgaria) – These distributors have also begun offering market-based products to free-market consumers. For instance, CEZ and Energo-Pro have introduced “time-of-use” plans where the effective price follows market curves (though many business clients still use fixed contracts). Energo-Pro’s publicly posted tariffs for business include a multi-rate (day/night) option, and they have also offered annual fixed or market-linked deals. CEZ has similar offerings (the details are less publicized, but CEZ’s subsidiary supplies businesses on the liberalized market and can match IBEX-based pricing).

• Other licensed traders: Smaller firms like Tick Energy, EnergyCare, Rosenfeld, Overgas, and others can and do sell to businesses. Some of these niche players offer IBEX-indexed products or have bespoke hourly contracts, leveraging smart-metering. Their impact is growing as the market liberalizes.

Customer segments: In practice, dynamic/IBEX tariffs are mainly for businesses with at least medium consumption and smart meters. Business customers (high-voltage or industrial) are already on the free market, so retailers compete with fixed vs. hourly products. Households (low-voltage) are still largely on regulated tariffs, but some suppliers are preparing time-of-use offers for residential clients who install smart meters. EU law explicitly permits “dynamic” schemes for households too, though uptake has been limited. As of 2025, few Bulgarian households have true hourly pricing plans; most “dynamic” marketing is directed at commercial users.

Key differences: Providers vary in how they set the markup. EVN uses a simple fixed fee or percentage, whereas Synergon uses a variable margin. The contract terms may include minimum consumption or payment guarantees. All require smart meters. Some dynamic plans waive certain fixed charges, treating the bill purely as hourly energy+VAT (for example, EVN’s Flex leaves transmission/distribution separate; customers still pay the regulated grid tariffs on top of the energy bill).

In summary, major suppliers (EVN, CEZ, Energo-Pro) and new retailers (Synergon, ALFA, Entra, etc.) now offer dynamic-price plans that pass through IBEX hourly prices to the customer, with an added supplier margin or fee. These options give businesses (and eventually households) flexibility to align consumption with market prices, subject to Bulgarian regulation (smart-meter requirement and consumer consent).

Peak and Off-Peak Hours

Bulgaria 2024 – Average Hourly Wholesale Electricity Price (IBEX)