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From Bulgaria
01.07.2014 17:10
© publics.bg
Despite earlier signals about possible slight decrease of electricity prices for households, Bulgaria’s State Energy and Water Regulatory Commission (SEWRC) approved Monday on a closed meeting an increase ranging between 0.64 and 2.78% as of July 1. A steeper increase starting at 8.3% was approved for small businesses which are still at the regulated market.
The regulator also enacted its decision to start compensating a financial gap of BGN 2.9 billion (about EUR 1.45 billion) in the state-owned National Electricity Company (NEC) through domestic pricing. A total of BGN 270 million have been included in the current pricing, while NEC was also awarded higher price (BGN 114.10/MWh up from BGN 100.43/MWh) at which it will sell electricity to other suppliers.
As sources of the looming financial deficit at the state-operator were identified PPAs with two locally supplied lignite power plants owned by U.S. based AES and ContourGlobal, as well as the surplus of PV and wind capacity awarded higher feed-in tariffs. In order to reduce their bulk on NEC and the regulated pricing the energy watchdog allowed NEC to curb electricity purchase from the two TPPs with 30 and 20% respectively. Despite warnings against further deficits from electricity distribution companies which are obliged to buy all RES energy produced in their networks with the presumption that NEC would later compensate them, it is highly likely that the energy regulator would also vote in favor of up to 50-percent restriction on RES purchase at feed-in tariffs.
Electricity distribution companies also disputed the lower approved technical loses and the rate of return on capital approved by the regulator. The electricity supplier of Southeastern Bulgaria managed by the local branch of Austria’s EVN, announced it would take the matter to court and include the results in the arbitration proceedings parent company EVN AG initiated at the International Centre for Settlement of Investment Disputes (ICSID) in 2013.
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