The Bulgarian Industrial Capital Association (BICA) expresses its categorical disagreement with the Law on Providing Financial Support to Household End-Users of Electricity adopted by the National Assembly and in particular with the provisions of Article 4, which oblige electricity distribution network operators to reimburse the state for the state aid paid.
This legal measure is extremely worrying and sets a dangerous precedent for the business environment in Bulgaria. It represents an attempt to transfer state obligations to the private sector without economic and legal justification, which violates the principles of the rule of law and the predictability of the regulatory environment.
BICA warns that such legislation sends a worrying signal to investors – both local and foreign. The forced assignment of costs to private companies without any compensation mechanisms in place violates basic market principles and creates uncertainty for all economic entities. This will inevitably lead to an outflow of investments and harm the long-term stability of the Bulgarian economy.
The question that arises is this: if the state today transfers its social policy to electricity distribution network operators, which industries will be next affected? Such an approach places all employers in a situation of uncertainty, as it creates the possibility of arbitrary financial burdens that can be imposed on any business sector.
BICA insists on:
- Immediate repeal of the provisions of Article 4 affecting electricity distribution network operators.
- A clear commitment from the legislative and executive branches to a predictable and fair regulatory environment that guarantees protection of investments and business rights.
BICA will continue to defend the interests of employers and the industrial sector in Bulgaria and will not tolerate laws that create legal uncertainty and impose unfair burdens on the private sector. We insist on transparency, dialogue and economic reason in the formation of legislation that has a direct impact on business and the country's economy.
