Bulgarian Parliament Adopts Water Services Bill at First Reading, Aims for Sector Reform

Parliament Advances Water Sector Reform

The Bulgarian Parliament has adopted a new Water Supply and Sewerage Bill at its first reading, marking a significant step towards comprehensive reform of the country's water services. The vote, held on Wednesday, October 22, 2025, saw 118 MPs vote in favour, 74 against, and six abstentions. The bill was supported by political groups including GERB-UDF, MRF-New Beginning, BSP-United Left, and There Is Such a People.

The proposed legislation aims to overhaul the existing framework for water supply and sewerage services, driven by the need to address critical issues within the sector and align with European Union directives.

Key Provisions and Objectives

The new bill introduces several fundamental changes designed to improve the efficiency and sustainability of Bulgaria's water infrastructure. Its primary objectives include:

• Separating Regulation: The bill mandates the separation of the regulation of water and sewerage services into a standalone entity. While the Energy and Water Regulatory Commission (EWRC) will continue its regulatory activities, it will operate through specialized, independent divisions for energy and water.
• New Pricing Structure: A revised pricing model will be implemented, moving beyond mere consumption to include a 'water meter fee' and charges for access to services. This structure is intended to guarantee minimum costs for system usage and necessary services.
• Consolidation and Management: The legislation seeks to clarify the roles and functions of all stakeholders and create conditions for consolidation in the management and operation of water and sewerage systems. It also regulates the role of the Bulgarian Water and Sewerage Holding EAD.
• Territorial Unification: The bill provides for the unification of service territories to align with administrative regions, aiming for a model of 'one region, one water and sewerage association, one water and sewerage operator.'

Addressing a Critical Water Crisis

The reform comes amidst a challenging period for Bulgaria's water sector. Reports indicate that as of September 2025, 89 municipalities experienced disrupted water supply, affecting over 260,000 people. The country faces significant water losses, estimated at around 60%, which is approximately 20% above the EU average, largely due to aging infrastructure from the 1960s and 1970s.

The bill is a component of the National Recovery and Resilience Plan (NRRP) and the Government's Program for 2025-2029, reflecting a broader commitment to long-term solutions and the potential for private capital investment in the sector. The European Commission has also initiated penalty proceedings against Bulgaria for its failure to correctly implement changes to European drinking water regulations, adding urgency to the reform efforts.

Parliamentary Debate and Future Outlook

The parliamentary discussions on the bill lasted nearly three hours, highlighting differing views between the opposition and the ruling parties. The Ombudsman Institution previously raised concerns regarding the bill's analytical basis and the 'single price' principle, suggesting it might not adequately account for varying water supply modes and associated costs.

Following its adoption at first reading, the bill will proceed through further parliamentary stages before its final enactment. The government's decision to approve the bill was made on July 23, 2025, with the Minister of Regional Development and Public Works authorized to present it to Parliament. Additionally, in response to the ongoing water crisis, the Parliament adopted a decision on September 3, 2025, to establish a National Water Board to coordinate urgent measures.