site.btaIndependent Bulgarian Energy Exchange Starts First Demonstration Session

Independent Bulgarian Energy Exchange Starts First Demonstration Session

Sofia, December 11 (BTA) - Energy Minister Temenouzhka Petkova opened the first demonstration session of the new Independent Bulgarian Energy Exchange (IBEX) in Sofia Friday.

Petkova said there are several important things to do during the process of complete liberalization of the Bulgarian electricity market, and perhaps the most important one is to identify the group of vulnerable consumers. She noted that Bulgaria is one of the most energy-poor EU member states, so it is necessary to think about vulnerable consumers and find mechanisms to protect them.

Petkova announced that the European Commission and the Bulgarian Energy Ministry have set up a working group to provide technical and expert assistance for the process of complete liberalization of the national electricity market.

"Liberalization is a major step forward for the Bulgarian electricity sector, a long-awaited moment and a government priority which is being implemented strictly," she said. She explained that full-fledged exchange-based trading of electricity will start at the beginning of 2016. "Liberalization is not a one-off step, it is a process that will go through separate stages, and at every stage it is important to watch for and minimize potential risks," the minister said.

State-owned electricity producers will participate in IBEX in the first five years in order to ensure the liquidity of the exchange. "This period is very important because the exchange market will develop during that time and it needs proper liquidity," Petkova went on to say.

Energy and Water Regulatory Commission (EWRC) Chairman Ivan Ivanov said IBEX adds transparency to the electricity trading procedures, creates equality among the participants, and will bring many murky deals into the light.

During the trial period of IBEX' operation, certified participants will be trained how to make offers and the system's full functionality will be tested. Seventeen bids have been submitted so far for participation in the exchange, Ivanov said.

"One advantage of the exchange is that it brings the Bulgarian electricity sector closer to the European energy market, closer to being linked with exchanges in neighbouring countries, allowing it to share in EU electricity trading," Ivanov said.

Standard electric load profiles will be established in the next two months, the EWRC chairman said, noting that these profiles are necessary for developing the exchange and leading household consumers off the regulated market. EWRC will oversee IBEX' operation and make sure that all participants are treated equally. Ivanov urged electricity companies and traders to participate in the exchange and secure its liquidity in order to make it an essential component of the Bulgarian energy system.