While there has been no formal assessment of the potential impact of the regulatory arrangements for the utilities sector in Bulgaria by the Department, an important consideration for many UK companies wishing to invest in the utilities sector overseas is transparent, independent regulation.
In Bulgaria, the State Energy and Water Regulatory Commission has been set up to provide the administrative infrastructure and the authority to implement efficient regulation in these sectors. In general, because its procedures follow closely those of OFWAT, this should be an advantage to UK companies, who are familiar with working in a regulated environment.
The implementation of these regulatory procedures is, however, at an early stage in respect of the water utilities.
Bulgaria's stable political and economic environment has created a favourable climate for inward investment resulting in approximately$2,324.2 million of foreign direct investment in 2005, including $245 million from the UK.