News

23 January 2023

Ombudsman Diana Kovacheva referred the Chairman of the Commission for Consumer Protection (CCP) Stoil Alipiev and the executive directors of Yettel Bulgaria EAD Jason King and of BTC EAD (Vivacom Bulgaria EAD) Nikolay Andreev because of the public dissatisfaction and the many complaints from citizens who are seeking assistance against the upcoming indexation of mobile service prices by the two operators.

Prof. Kovacheva emphasized that because of the high inflation and the reduced purchasing power of the people, the announced increase in the prices of services was unacceptable, which for Yettel Bulgaria EAD is 15.4%, according to the average annual index of the National Statistical Institute (NSI), and for Vivacom Bulgaria EAD is up to BGN 2 per service.  

In a letter to the Chairman of the CCP, the Ombudsman requested checks to be conducted on whether the specified mobile operators engaged in unfair commercial practices within the meaning of the Consumer Protection Act.

Prof. Kovacheva recalled that in December 2021, on the occasion of a previous indexation of the prices of mobile services, CCP recommended to all mobile operators should set a specific deadline in the clauses providing for the possibility of indexing the prices of monthly subscription fees, which should not be longer than 3 months from the NSI’s announcement of the average annual consumer price index, during which they can exercise their right to index prices, in order to ensure predictability and clarity for consumers.

 “In times of severe financial crisis, instability in the political situation in the country and tension among all citizens of Bulgaria, there is no need to put users of telecommunication services under additional stress,” the Ombudsman wrote in her letter to Vivacom.

 In the letter to Yettel, she asked the same question as the one in regard to the previous increase – how does the rising inflation affect the prices of telecommunication services?

Yettel (Telenor) then informed the Ombudsman that this business decision was taken due to the significant increase in operating costs caused by the rising prices of electricity, fuel, etc.

“I want to emphasize that throughout 2022, as well as in 2023, non-residential end-customers of electricity, such as you, receive monthly compensation from the government for electricity prices. As for fuel prices, in recent months there has been a downward trend,” Diana Kovacheva pointed out.

She was adamant that the 15.3% increase in the prices of the services of Yettel Bulgaria EAD was currently unacceptable, especially since the company’s expenses are not price-setting, and she added that this would affect the collection of its debts.

 “Considering the possible cession that applies, your customers will not be able to pay their debts on time and will face more and more difficulties. It is very important to consider the plans for the elderly and people with disabilities, who in no way should be affected by the indexation,” the Ombudsman wrote to Jason King.

In conclusion, Prof. Kovacheva urged the managements of both operators to reconsider their decisions and to not apply indexation of the prices of the mobile services they provide.