News

30 May 2025

The Ombudsman Institution approached the Minister of Finance Temenuzhka Petkova to ask on what tax base in the invoices of households for electricity the VAT would be charged. Next, the Institution suggests that rules of accounting be published.

The reason is that the Act Amending the Energy Act reads that as of 1 July 2025 changes are codified concerning the method of electricity pricing for household consumers.

“According to § 1 of the Act Amending the Energy Act, customers shall pay a base price for electricity for 1 MWh and the component of the end supplier’s price, which will be set by the Energy and Water Regulatory Commission (EWRC). “The end supplier’s price of electricity is the sum of weighted average price under Art. 30c, para 1, relatable to the respective end supplier for the respective month, and the component under para 1.“/§ 2/. According to § 1 and § 3 of the Act Amending the Energy Act, the EWRC awards a monthly compensation to household customers which represents the difference between the achieved weighted average price for the relevant quantities purchased from the relevant end supplier for the relevant month and the base price of electricity for 1 MWh as set by the regulating authority,” the Ombudsman’s Secretary General Dr. Aysun Avdjiev writes.

He adds that the amount of the compensation can be differentiated according to the quantity of electricity purchased and be for all or part of the quantity of electricity purchased by household end customers.

”The end suppliers shall indicate in the monthly invoice the amount of the compensation.” /§ 12/ According to Art. 6, para 3 and Art. 37f, para 6 of the EWRC Regulation No. 1/2017 on the regulation of electricity prices, the regulating authority shall set the prices and pricing elements of electricity and compensations excluding VAT,” Dr. Avdjiev emphasizes.

In another letter to the EWRC Chairman Plamen Mladenovski, the Secretary General of the Ombudsman recommends that a procedure be opened to amend and supplement the General Terms and Conditions for the sale of electricity of Electrohold Sales EAD, EVN Bulgaria Elektrosnabdyavane EAD and ENERGO-PRO Sales AD in order to bring them in line with the Act Amending the Energy Act.

“We consider it is necessary to systematically indicate in them what the invoices that end suppliers will issue to household customers from 1 July 2025 onwards will contain,” Dr. Avdjiev concludes.