Bulgaria Proposes Generous Retirement Plan for Coal Workers Amidst Energy Transition
Bulgaria’s energy sector is undergoing a significant transformation, and the government is proposing a generous retirement package for aging miners and energy workers to ease the transition. A new bill, currently under review by trade unions, would grant eligible workers up to five years of paid leave, covering 80% of their gross salary and 100% of their social security benefits.
Miners,already eligible for earlier retirement due to the physically demanding nature of their work,would see this benefit further enhance their post-retirement security.However, the financial implications of this proposal remain unclear, with questions surrounding the funding source.
In a related development, the Bulgarian government plans to establish a state-owned company dedicated to the restoration and revitalization of land affected by coal mining activities.Funding for this initiative will be drawn from the National Plan for Recovery and Stabilization, although current disbursement is stalled due to Bulgaria’s failure to meet European Commission requirements for the release of €600 million in EU funds. Additional funding sources may include EU and international organization programs,the state budget,and other avenues.
“The two draft laws – for the green movement of coal sectors and for early retirement as those who work in the sector are called – reflect our vision of the support that coal energy should receive in the country. Peace for those working in the sector and at the same time – good employment and a smooth transition of the affected sectors,”
said Acting Energy Minister Vladimir Malinov at a recent joint meeting of industry councils.
Malinov emphasized the continued reliance on coal-fired power plants in Bulgaria’s current electricity mix, highlighting the government’s exploration of support options compliant with state aid regulations. Recent actions by the ministry include directing increased electricity sales from the state-owned maritsa Iztok 2 thermal power plant to the regulated market to meet higher-than-anticipated household demand.
Furthermore,to ensure a stable electricity supply,two units of the ConturGlobal Maritsa Iztok 3 thermal power plant,previously shut down,are now resuming operations to specifically address household energy needs. The remaining units of the plant, partly owned by the American investment firm KKR, are now selling electricity on the open market, according to the National Electric Company (NEK).
In December, Malinov announced the government’s intention to acquire full ownership of these two units from KKR, although the process requires legal separation of assets and valuation. The future of the remaining assets and land will be resolute by the majority shareholders.
