On July 26, 2023, the Supreme Administrative Court issued a final ruling confirming the decision of Administrative court- Sofia city on the appeal brought by Sofiyska Voda AD, against the decision of the Commission for Energy and Water Regulation determining the rate of return of Sofiyska Voda AD for the regulatory period 2022-2026. With the ruling of the Court, the decision of the Commission for Energy and Water Regulation is repealed as issued without substantial reasoning. The Court ruling contains very important conclusions with respect to the mandatory obligations of CEWR in cases where the water operator is also a concessionaire. According to the court the Regulator in determining the rate of return of the concessionaire operator is obliged to take into consideration the specifics of the company, including the effective Concession Agreement, and review it separately from the other operators.

The Court further, for the first time in Bulgarian case law, provides guidance and analysis on issues related to the economic balance of concessions.

Link to the court decision № 8095 of 26.07.2023 of the Bulgarian Supreme Administrative Court:

https://info-adc.justice.bg/courts/portal/edis.nsf/e_act.xsp?id=2151050&code=vas&guid=1416172747