Foto: from

KEVR represented to the Parliamentary sub-commission their views on the state of the free electricity market and provided its decision on the price of natural gas from 1 January 2018.

“The decision of the regulator on the price of natural gas for the first quarter of 2018 is fully justified and has been taken in accordance with the regulatory requirements and the parameters set in the contract of Bulgargaz EAD and Gazpromexport. The regulator adjusted the price requested in the public utility’s application because it found no grounds for recognizing some of its costs and thus the price increase was not 2.87% and 2.75% “. This was stated by the chairwoman of the KEVR Assoc. Prof. Ivan Ivanov at the meeting of the Parliamentary Subcommittee for the Monitoring of the Energy Regulator’s Activity, which was attended by Commissioner Evgenia Haritonova as well as the experts of the regulator. He explained that the change in the price of natural gas keeps in its current size the prices of the heat, which will remain unchanged until the end of the heating season. The prices of electricity on the regulated market are also kept, as there is no reason for a change in the price of high-efficiency electricity, produced by a combined method by district heating companies. Ivan Ivanov announced that on February 10, Bulgargaz EAD should publish its initial forecast for the gas price for the second quarter of the year, and on March 10th to officially submit its price application to the CESR.

The parliamentary subcommittee also held a discussion on the state of the free electricity market, in which representatives of BFIEC and civil associations participated. Regarding the normalization of the situation on the prices of the electricity market, the Chairman of the KEWR explained that the regulator can not control the bilateral contracts of the business with the traders. At the same time, he suggested as possible solutions the return of the small business to the regulated market, where the price of the electricity is lower, and the big employers directly to buy electricity from the stock exchange. “In this way two effects will be achieved: on the one hand, the small business will have a stable price for electricity and on the other – the large industry will be able to buy the necessary quantities of electricity at stock prices on its own and without intermediaries.

At the discussion in the Subcommittee, Assoc. Prof. Ivan Ivanov informed that the KEWR is developing a model which requires all heating companies and power plants to supply all the electricity produced on a highly efficient combined method. The calculations show that in this way an additional 400 megawatts of electricity will be provided on the stock exchange, which will increase its liquidity. It is envisaged to be done through “contracts for difference”, the price being formed by two components – a stock price and an allowance taking into account the technical parameters of the individual heat plants. The chairman of the KEURO pointed out that for this purpose the legislator needs to change Art. 162 of the Energy Act, which obliges NEK to buy high-efficiency combined electric power at preferential prices. More.

View source: Here

EEU Academy CoursesGAS IndustryElectricity
Stay informed about energy prices in Europe

subscribe and You will receive precious information about the energy policies and European legislation in the energy area