The European Commission has referred Bulgaria to the Court of Justice of the European Union for failing to fully transpose Directive (EU) 2019/944 on the internal market in electricity

The European Commission has decided to bring an action against Bulgaria before the Court of Justice of the European Union (case INFR(2021)0015) for failing to fully transpose into national law Directive (EU) 2019/944 on common rules for the internal market in electricity and amending Directive 2012/27/EU. The Commission is asking the Court to impose financial penalties on the country pursuant to Article 260(3) of the Treaty on the Functioning of the European Union (TFEU). The decision forms part of the Commission’s efforts to enforce EU law with a view to removing barriers to the single market in 11 priority areas set out in the communication ‘A simpler, clearer and more rigorously enforced EU regulatory framework’ (COM(2026) 380 final, Annex II).

Subject matter and objectives of the Directive

Directive (EU) 2019/944 governs the organisation and functioning of the electricity sector in the EU. It lays down common rules for the generation, transmission, distribution, storage and supply of electricity, as well as provisions for consumer protection. The aim is to establish integrated, competitive, flexible, fair and transparent electricity markets that are consumer-oriented, with a high level of consumer protection and the opportunity for consumers to participate actively in the market.

The Directive extends consumers’ rights, strengthens retail markets, facilitates participation in demand response, supports the integration of electricity from renewable sources, and clearly allocates responsibilities between market participants and system operators. According to the Commission, its full transposition is a prerequisite for the proper functioning of the internal electricity market in all Member States and for ensuring secure, affordable and clean energy for citizens and businesses.

Timeline of proceedings

Bulgaria was required to transpose the Directive by 31 December 2020. Having concluded that not all provisions of the Directive had been transposed into national law, the Commission sent Bulgaria a letter of formal notice in February 2021 and a reasoned opinion in April 2023 Having examined the replies submitted by Bulgaria, as well as the national transposition measures that were notified, the Commission considers that Bulgaria has not yet fully transposed the Directive.

Identified shortcomings in transposition

The Commission identifies shortcomings in three main areas.

With regard to market regulation and consumer rights, third-party access to the network, the procedure for granting authorisations for new generation capacity, the right of consumers to participate in collective supplier-switching schemes, and the requirements for the use of flexibility in distribution networks.

With regard to the transmission system operator, the Commission identifies shortcomings in the regulation of its tasks relating to digitalisation, data management and the provision of ancillary services other than frequency control.

With regard to the national regulatory authority (KEVR), the shortcomings concern its powers and obligations to monitor investments in electricity generation and storage, in self-generation and in community energy schemes, as well as to approve methodologies for ancillary services.

Legal framework and possible sanctions

Under Article 258 of the TFEU, where a Member State fails to comply with the reasoned opinion within the prescribed period, the Commission may refer the matter to the Court of Justice of the European Union. Article 260(3) of the TFEU enables the Commission to request the imposition of financial penalties as early as this first stage of proceedings where a Member State has failed to fulfil its obligation to notify measures transposing a directive adopted under the legislative procedure. The Court may impose a lump-sum payment or a periodic penalty payment without the need for a second set of proceedings for failure to comply with the judgment. The amount of the penalties sought is not specified in the Commission’s communication.

Context

The Commission currently has infringement proceedings pending against 10 Member States which have failed to notify measures fully transposing Directive (EU) 2019/944 within the prescribed time limit. As guardian of the Treaties, the Commission is obliged to ensure the full and correct implementation of EU law into national legal systems.

This is not the first case against Bulgaria in the field of the internal energy market. By way of comparison, under the previous framework of the Third Energy Package, the Commission referred Bulgaria to the Court of Justice for incomplete transposition of the Electricity and Natural Gas Directives, proposing a daily financial penalty of €8,448 for each of the two directives. Separately, under Directive (EU) 2019/944, the Commission has opened proceedings against Bulgaria and Croatia by means of a letter of formal notice, as the two countries have failed to submit their report on the implementation of Article 5 of the Directive, which was due by 1 January 2025. Article 5 governs the market-based setting of supply prices, including the conditions for public intervention in their determination.

There are currently 79 active infringement proceedings against Bulgaria, more than half of which relate to a failure to notify measures ensuring correct transposition.

Among the active proceedings relating to the electricity sector and announced over the last two years are:

• Proceeding INFR(2025)2161 under Article 5 of Directive (EU) 2019/944: In October 2025, the Commission sent a letter of formal notice to Bulgaria and Croatia for failing to submit their reports on the implementation of Article 5 of the Directive by 1 January 2025. These reports set out the necessity and proportionality of public intervention in electricity prices, including progress towards effective competition between suppliers and the transition to market-based prices. Given the regulated prices for household consumers in Bulgaria, these proceedings are substantively linked to the current case.
• Directive (EU) 2024/1711 on the reform of the electricity market. The Commission sent formal letters of notification to 26 Member States, including Bulgaria, regarding the incomplete transposition of some of the Directive’s provisions. The deadline for notification was 17 January 2025, with the exception of the provisions on free choice of supplier and energy sharing, for which the deadline is 17 July 2026. With regard to the second set of provisions, Bulgaria is not among the 18 countries that received letters of formal notice in September 2026. However, the Commission’s communication does not specify whether these countries have fully transposed the directive, and the compliance of national rules has not yet been assessed; the letters concern only the failure to notify, not the content of the measures.
• Case INFR(2024)0211 under Directive (EU) 2023/2413 (RED III), authorisation procedures. In February 2025, the Commission sent a reasoned opinion to Bulgaria. The provisions simplify and shorten the authorisation procedures for both renewable energy projects and the infrastructure required to integrate additional capacity into the electricity system. In the case of Bulgaria, France and the Netherlands, the grounds are that they have not provided sufficiently clear and precise information on how their national measures transpose each of the provisions of the Directive.
• Full transposition of RED III. In July 2025, the Commission sent formal letters of notification to 26 Member States, including Bulgaria, for failing to notify the full transposition of Directive (EU) 2023/2413, for which the overall deadline was 21 May 2025.

Otherwise, there are 14 active proceedings – 12 in the field of energy and two in the field of climate, specifically the Emissions Trading Scheme. Two proceedings are before the Court of Justice, three are at the reasoned opinion stage and nine are at the letter of formal notice stage:

There are 10 proceedings relating to the failure to notify measures transposing directives. All of these are being conducted under Articles 258 and 260(3) of the TFEU, i.e. with the possibility of financial penalties from the very first court ruling.

There are two proceedings concerning the incorrect application of directives: INFR(2018)2017 (radioactive waste) and INFR(2025)2161 (reporting under Article 5 of Directive 2019/944).

For non-conformity of transposition – 1 procedure: INFR(2020)2073 (oil stocks).

Incorrect application of regulations, treaties and decisions – 1 infringement procedure: INFR(2025)2223 (Energy Charter Treaty).

Specifically regarding the electricity market, there are three infringement procedures: INFR(2021)0015, INFR(2025)0121 and INFR(2025)2161, whilst INFR(2021)0157, INFR(2024)0211 and INFR(2025)0198 are directly related to renewable energy sources in the electricity sector.

For further information

Directive (EU) 2019/944 on the internal market for electricity

EU infringement proceedings

Database of infringement decisions and map and charts on infringements

Infringement proceedings from October 2026