Bulgaria to launch first EU support scheme for energy-heavy industry

Bulgaria is poised to become the first European Union member state to introduce a dedicated support scheme for energy-intensive industries, aiming to shield firms from elevated power costs stemming from the energy crisis triggered by the war in Iran.

Energy Minister Traicho Traikov said the programme is in the final stage of European Commission approval and is expected to launch within two to three weeks.

The scheme will reimburse a share of electricity costs for eligible companies and will apply retroactively from 1 July 2025.

What will the scheme cover?

Under the plan, the government will reimburse 50% of additional electricity costs when market prices exceed €63 per megawatt hour.

The measure is designed specifically to support energy-intensive industries, providing targeted relief when wholesale prices rise above the threshold.

Compensation will be applied retroactively from 1 July 2025, meaning eligible firms can claim support for costs incurred from that date once the scheme takes effect.

Timing and approval

Speaking at a government briefing on Friday, Traikov said the scheme is in the final stage of review by the European Commission and is expected to launch within two to three weeks, subject to that approval.

The programme would make Bulgaria the first EU member state to roll out a dedicated support mechanism of this kind for energy-intensive industries.

Funding and expected outlays

The initiative is backed by €125 million ($143.36 million) from the Energy System Security Fund, covering the period from July 2025 to June 2026.

With electricity prices over the past year described as relatively contained, authorities estimate spending under the mechanism will be limited in 2026.

The fund has nonetheless been set aside to respond if market conditions deteriorate.

Household tariffs and market backdrop

Traikov said regulated household electricity tariffs remain unchanged.

He described current price levels as posing no immediate concern and characterised the measures as precautionary, citing Bulgaria's largely domestic power production.

The initiative forms part of broader efforts to offset the impact of the energy crisis triggered by the war in Iran.

Why it matters

The programme establishes a clear, rules-based buffer for heavy power users when market prices climb, whilst leaving household tariffs untouched.

For the industry, the €63 per megawatt hour trigger and 50% reimbursement formula offer visibility on potential relief should costs surge.

If approved and launched on the timeline Traikov outlined, the scheme would mark a notable policy first within the EU and a test of whether narrowly targeted support can help energy-intensive sectors manage price volatility without broad market intervention.

The government is positioning the measure as a backstop rather than a response to acute stress, pointing to recent price stability and Bulgaria's domestic generation base.

Pending European Commission approval, Bulgaria is moving to protect energy-intensive industries with a time-bound, threshold-based power cost rebate — funded for July 2025 to June 2026 — while keeping household tariffs steady.