Brussels, 12 July 2024
The European Commission has approved, under EU State aid rules, a €142 million (BGN 278 million) Bulgarian scheme to support the energy sector.
The scheme aims to alleviate part of the costs for companies that stored natural gas at the Chiren underground gas facility to help Bulgaria reach its 80% filling targets before the start of the heating season in November 2022 in accordance with the Gas Security of Supply Regulation 2017/1938.
The aid will take the form of direct grants to natural gas suppliers. The aid will compensate part of their losses stemming from storing high-priced gas in summer 2022 to meet Bulgaria’s filling obligations, and then selling it at lower prices from November 2022 to April 2024. The aid is capped at €76.7/MWh (150 BGN/MWh), and only half of the stored gas can be taken into account in calculating the final aid amount. The scheme will run until 31 December 2024.
The Commission assessed the scheme under Article 107(3)(b) of the Treaty on the Functioning of the EU, which allows Member States to remedy a serious disturbance in the economy, and in particular point (43) of the Temporary Crisis and Transition Framework on measures incentivising the filling of gas storage facilities. The Commission found that the scheme is necessary and appropriate to increase security of gas supply and remedy a serious disturbance in the economy. Moreover, the Commission found that the scheme is proportionate as the aid is limited to the minimum necessary and will have a limited impact on competition and trade in the EU. On this basis, the Commission approved the Bulgarian scheme under EU State aid rules.
The non-confidential version of the decision will be made available under case number SA.112301 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.