Mr. ten Berge, what are the main tasks of Eurelectric? What will be the focus of your work in 2014 and 2015?

EURELECTRIC is the association representing the European electricity industry in Brussels. We work to formulate and defend the industry’s interest in the EU legislative process. Our current priorities focus on three main areas: (1) pursuing decarbonisation to 2050, by strengthening the EU Emissions Trading Scheme and promoting policies that drive electrification; (2) ensuring a competitive approach to the low-carbon generation mix and making the market design fit for the future energy system; (3) empowering customers to play a more active role. 

Has the inclusion of Bulgaria in Eurelectric changed the organization’s perspective on this country and perhaps the region?

EURELECTRIC’s membership reflects the broad map of energy policies that are in place in Europe today: from the integrated Nordic market to other regions that are still more fragmented. We believe that the full application of the EU’s Third Energy Package would encourage the development of an Internal Energy Market and allow Europe to move from national energy islands to a single cross-border market, with resulting benefits for consumers.

During your presentation in Sofia on May 7 you outlined the most acute issues of Bulgaria’s energy sector. How would Eurelectric address these major points?

Investment in Bulgaria – like elsewhere – requires a stable regulatory framework, which is at stake when licences are withdrawn. EURELECTRIC sees a risk that such decisions could undermine the investment climate and limit the Bulgarian ability to attract capital. We therefore strongly encourage the parties involved to find a solution that respects the independent regulatory power of the State Energy and Water Regulatory Commission and the investments made.

What should be done in Bulgaria in order to improve the level of independence of the State Energy and Water Regulatory Commission?

EURELECTRIC has noticed that the replacement of the Commissioner of the Energy and Water Regulatory Commission occurs much more frequently than in other European countries. In addition we have seen a certain degree of coherence between statements made by politicians and actions of the regulator. An independent regulator, enabling stable prices and a sound investment climate, is in the interest of consumers and industry. Currently this would not seem to be the case. EURELECTRIC would therefore encourage a functioning Bulgarian regulator to look towards regulators of other member states and see what lessons can be drawn.

Is the European energy industry ready for a time of lower generation profits paired with the need of extensive infrastructure investments?

Capital always moves to where it can attract a reasonable return. If this rate drops below an acceptable level, then capital will not flow. Bulgaria has the lowest retail prices in Europe, which would not invite new capital projects. The solution does not lie in lower prices, but in ensuring that the Bulgarian standards of living are brought in line with those of other European countries.

How does conventional generation compare to renewables and how could countries still applying incentives for green energy transition to a market approach?

EURELECTRIC thinks that subsidies on renewables and conventional generation sources should be phased out. Instead, the generation mix should be determined in full competition to ensure the best price for consumers. We are convinced that, with a sound EU Emissions Trading Scheme in place, renewables could find their rightful place in a market even without subsidies.

Do you consider that the time of universal European energy policy solutions could be coming to an end?

EURELECTRIC recognises that more national steps are being taken in energy policy across Europe. We would regret this, considering that EU competitiveness requires more harmonised policy to ensure the realisation of benefits for the population. These benefits are not achievable through fragmentation. We would therefore invite Bulgaria to fully participate in setting the EU agenda. The structure of EURELECTRIC represents a good forum for doing so.

Questions by Lyudmila Zlateva