EC Approves Bulgarian State Aid Scheme

The European Commission has approved State aid schemes to provide temporary electricity price relief for energy-intensive companies in Bulgaria, Germany and Slovenia in line with the objectives of the Clean Industrial Deal. Through the condition to reinvest a significant share of the aid received in decarbonisation measures, these schemes will contribute to the transition towards a net-zero economy.

Bulgaria, Germany and Slovenia notified to the Commission, under the CISAF, schemes to provide temporary electricity price relief for companies in energy-intensive industries. The budgets of the schemes are €334 million for Bulgaria, €3.8 billion for Germany and €90 million for Slovenia.

The purpose of the schemes is to support energy-intensive companies by compensating them for a share of their electricity costs in the coming three years. The measures will be open to companies active in sectors with a significant risk of activities moving outside the EU to locations where environmental measures are absent or less ambitious.This risk depends on the electro-intensity of the sector in question and its openness to international trade.

The Bulgarian measure will run from 1 July 2025 to 30 June 2028. Bulgaria will pay the aid through electricity suppliers via a reduction on the beneficiaries' monthly electricity bill.

The Commission concluded that the schemes are necessary, appropriate and proportionate to accelerate the transition towards a net-zero economy and facilitate the development of certain economic activities, which are of importance for the implementation of the Clean Industrial Deal.