Bulgaria’s energy sector is characterized by severe financial weaknesses related to high levels of indebtedness, low profitability and bad governance. The financial outlook of state-owned enterprises has become increasingly problematic in the 2011-2013 period. An overview of the financial health of the largest energy companies reveals a desperate need for liquidity and a reform of the pricing method to abolish destabilizing subsidies, improve debt collection and the energy mix, and invest in the minimization of power distribution losses.
