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31.07.2018 13:29
NEK charges unreasonable costs to renewable energy plants
The state-owned company is threatened with hefty anti-monopoly fine

  • © Brett Sayles,

Due to unjustified costs charged by renewable energy plants sources, the National Electric Company (NEK) is facing a fine of up to 10 percent of its revenues for 2017, Mediapool repots. On Monday, the Commission for the Protection of Competition (KZK) issued a statement that the company abused its dominant position on the balancing market of electricity producers from renewable energy sources by imposing unfair trading conditions on solar, wind, water and biomass power plants participating in the balancing group of NEK.

If the allegations are proven, NEK, which has a turnover exceeding 3 billion leva, may be sanctioned with a fine up to 300 million leva.

According to KZK, the state-owned company had adjusted its own hourly schedules for the generation of electricity from RES plants belonging to the special balancing group of the state power supplier without having the right to do so. This has led to additional costs for imbalances for renewable plants.

KZK’s inquiry found that with the launch of the balancing market in its full volume on 1 June 2014, NEK, as a special balancing co-ordinator, unilaterally and unjustly altered the hourly forecast schedules submitted by RES producers. As a result of these changes RES producers were financially strained due to the artificially increased imbalances for them.

The regulatory organ also found that the methodology used, allowed NEK to charge the RES producers unrealistic costs. In this manner, the electricity company unilaterally and unjustifiably imposed on RES producers financial burdens that do not reflect objectively the incurred costs for the usage of the power system.

Within 30 days, the state company may consult the materials and object to the allegations.

TAGS: NEK | bulgaria | fine | competition | competition law | electricity | renewables | RES | renewable power plants 

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