Title: Price Hikes in Bulgaria: Utilities, Mobile Services, and Dining Out hit Consumers
The new year has brought a wave of price increases in Bulgaria, with services like electricity, water, and mobile operators raising their rates. The question on everyone’s mind is: Why now, and how much more can consumers bear? Meanwhile, the debate around the reintroduction of 20% VAT on bread and restaurant services is far from over.
In Conversation with Bogomil Nikolov of "Active Consumers"
FAKTI: Mr. Nikolov, we’re greeted by price hikes in Bulgaria this New Year, notably in utilities and mobile services. What’s behind this trend?
B.N.: I’m not sure if many prices have actually gone up. There’s certainly a lot of noise around it. Mobile operators, for instance, have done this before, last year and the year before that. It seems they’re exploiting a lack of effective public debate. Take the power crisis – we’re still discussing the same issues from 13 months ago, with no progress in resolving them. We keep talking about reverting VAT on bread and restaurant services, but should we really be dramatizing the situation? We should focus on finding solutions for these specific sectors, and remember that other sectors are watching.
FAKTI: But how much can consumers afford to shoulder? These changes impact every family budget.
B.N.: We’re all complicit in these price increases by not speaking out. With only 30% turnout in elections and zero protests, what do we expect from our government? We’re vocal online, but that’s not enough. Business actively lobbies every day, and the government listens to them, not the silent majority. We need to make our voices heard.
FAKTI: The return of 20% VAT for restaurants is controversial, especially given the absence of a pandemic. Why is this happening?
B.N.: KoviD might be gone, but these businesses are losing their subsidies. It’s a paradox – consumers didn’t see lower prices during the lockdown; now businesses threaten to raise prices if they lose their subsidies. The government listens to businesses, not consumers. We need targeted social programs, not market interventions that benefit businesses but don’t translate to lower prices for us.
FAKTI: Where are the state bodies supposed to protect consumer rights? What about the Commission for the Protection of Competition and the Commission for the Protection of Consumers?
B.N.: That’s a valid question. Only the Commission for the Protection of Consumers has a regular mandate. The rest have expired mandates, and their leaders are conspicuously absent. These institutions should protect consumers, but they’re lacking motivation, as they don’t know how long they’ll keep their posts. We should consider making these bodies part of the executive branch to hold them accountable. Just look at the power crisis – everyone’s passing the buck, and businesses are taking advantage.
Call to Action
As consumers, we need to speak up and make our voices heard. Only then can we hope for change and fair prices. The current system benefits businesses at our expense. It’s high time we demand accountability and transparency from our government and the companies we rely on.
Originally published by FAKTI
