site.btaConsumers to Be Protected after Complete Liberalization of Bulgaria's Energy Market Double in Number

Consumers to Be Protected after Complete Liberalization of  Bulgaria's Energy Market Double in Number

Sofia, May 26 (BTA) - A new definition of the term "vulnerable client" envisages a two-fold increase in the number of household users who will be protected by the State during the forthcoming complete liberalization of the energy market, Energy Minister Temenouzhka Petkova said here Thursday. Presenting the planned measures for the protection of vulnerable clients during the energy market liberalization, she said that their number stands at 256,000 individuals and families under the current legislation, while the new definition will increase this number to 500,000 individuals and families, or 1.1 million people, which is 14 per cent of the Bulgarian population.

The measures for the vulnerable clients' protection are financial and non-financial, with the long-term measure being energy efficiency, Petkova said. The criteria for determining the persons who can receive this protection when using electricity, have been set with the help of the Labour and Social Policy Ministry and the Social Assistance Agency, she added.

The financial measure consists of a social tariff applicable for a period of five years that will cover certain categories of persons, Petkova explained. The first such category comprises people aged over 70 who live alone and have only their pension as an income, amounting to a certain poverty threshold in the country in the corresponding year. Other categories include users who have a work capacity reduced by over 90 per cent, the families of children with disabilities provided with outside assistance, and individuals and families currently receiving heating assistance benefits.

The social tariff will cover up to 100 kWh of electricity a month for persons using central heating or natural gas, and 150 kWh for those using a boiler to heat water, Petkova specified.

One of the non-financial measures for the protection of vulnerable users is the creation of a register for persons relying on life-support machines so that their electricity supply is not interrupted. Data to this effect will be provided by the Health Ministry. Another non-financial measure is a ban on the interruption of electricity supply in winter for persons who have a work capacity reduced by over 90 per cent and an assistant and who have delayed their payments by up to 30 days. Also, vulnerable clients will have the opportunity to restructure their debts, the minister added. Other non-financial measures include online platforms for comparing electricity prices, information campaigns and the elaboration of an ethical code with rules of conduct of energy suppliers.

Talking about the long-term measure of energy efficiency, Petkova said that the problem of many multi-family residential buildings in Bulgaria not being energy efficient is a serious issue. "We are considering the option of giving priority to the retrofitting of such buildings with over 30 per cent vulnerable clients, by amending the rules related to the implementation of the national retrofitting programme worth 1 billion leva," she noted. In her words, energy efficiency is a very important measure because it will reduce the vulnerable clients' expenses on energy resources, prolong the life of multi-family residential buildings and make these more comfortable.

The mechanisms for the vulnerable users' protection will enter into force once the model for the energy market's complete liberalization is determinated conclusively, which is expected to happen within two weeks, Petkova said. Then legislative changes will be introduced in the Energy Act and social legislation, she added. The Energy Minister expressed the hope that this will happen before or immediately after the National Assembly's summer break.

Addressing the forum, EU Commissioner for Climate Action and Energy Miguel Arias Canete said that the Commission commends the reduction of the regulated section and the increase of the liberalized section of the energy market in Bulgaria. In his view Bulgaria sets an example for the other countries in terms of initiative and determination to apply such measures. According to the Commissioner, taking of adequate measures for the protection of vulnerable clients is a very important step and a corner stone for the success of the liberalization market.

The European Commissioner noted that the legislation will be updated later this year and the Commission will come up with a specific proposal regarding strategic investments in energy efficiency.