Bulgaria leads EU with new aid program for industrial electricity costs

Bulgaria is set to become the first European Union member state to implement a dedicated support scheme for energy-intensive industries, aimed at mitigating the impact of the energy crisis triggered by the war in Iran.

Speaking at a government briefing, Energy Minister Traicho Traikov said the plan is in the final stage of European Commission approval and is expected to launch within two to three weeks, Reuters reports.

Under the scheme, the government will reimburse 50% of additional electricity costs for industrial consumers when market prices exceed €63 per megawatt hour. The measure will be applied retroactively from July 1, 2025.

Traikov emphasized that regulated household electricity tariffs will remain unchanged and that current price levels pose no immediate concern. He described the measures as precautionary, noting Bulgaria’s largely domestic power production.

The program is backed by €125 million ($143.36 million) from the Energy System Security Fund for the period from July 2025 to June 2026. Authorities expect limited spending under the new mechanism in 2026, as electricity prices have remained relatively contained over the past year.

By Vafa Guliyeva