Bulgarian Water Holding subsidiary faces investigation over electricity contract losses

Bulgarian Regional Development Minister Ivan Shishkov has referred the transactions of VIK Energy Group, a subsidiary of the Bulgarian Water Holding, to the Sofia City Prosecutor's Office following the discovery of significant financial losses.

Investigations revealed that the state-owned company incurred losses exceeding 1.7 million BGN, with total damages estimated at over 2.6 million BGN when including lost profits. The losses stem from three long-term, disadvantageous electricity purchase contracts signed in late 2025 with companies including Voltura EOOD, Ampersand Energy, and Solar SV. These contracts utilized fixed prices above 70 BGN per megawatt-hour, regardless of market fluctuations.

The contract mechanisms allowed suppliers to sell electricity only when market prices were low, while the state company was obligated to purchase the energy without the right to refuse. During periods without these deliveries, water utility operators in cities such as Vratsa, Plovdiv, Dobrich, Shumen, Sliven, and Yambol were forced to purchase electricity from other sources at prevailing market rates. Authorities are now evaluating whether these deals constitute criminal activity or if damages can be recovered through civil litigation.