site.btaBulgaria Should Phase Out Regulated Electricity Prices, Accelerate Interconnection with Neighbours - European Commission

Bulgaria Should Phase Out Regulated Electricity Prices, Accelerate Interconnection with Neighbours - European Commission

Brussels, October 13 (BTA Correspondent Nikolay Zheliazkov) -
The European Commission presented Monday its Internal Energy
Market progress report. The package not only takes stock of the
main achievements and outstanding challenges, but also reports
on the trends and developments of the developing EU Energy
Markets. Moreover, detailed analyses have been carried and
published in separate reports on investments, unbundling and
enforcement. Finally, 28 country-specific reports have been
adopted containing individual assessments of the state of the
energy markets in the Member States.

The report about Bulgaria says that the domestic market is
characterized by an overcapacity in electricity generation. The
Commission recommends that efforts on establishing a
well-functioning balancing market including putting into place
an organised independent power exchange and day-ahead market
should be increased. The existing quota system for power plants
in the regulated segment of the market should be phased out
gradually and the current single-buyer model should also be
removed. Bulgaria needs to gradually phase out regulated
electricity prices also for households and small and
medium-sized businesses connected at low voltage and take
necessary steps towards a competitive retail market, says the
report.

Furthermore, an effort should be made to accelerate the
implementation of electricity interconnection points and enhance
the capacity to cope with disruptions. With regards to the gas
market, connection of the domestic gas transmission system and
the transit system via adequate capacity level remains an
outstanding issue and the delays observed in
developing interconnections with neighbouring countries should
be resolved and promoted, the Commission says. The
certification process of the independent gas transmission
operator should be completed.

According to the Commission, the progressive dismantling of the
Bulgarian Energy Holding conglomerate and an ownership
unbundling of the transmission system operators would
essentially help reducing the dominance of the incumbent company
and introduce more competition on the Bulgarian electricity and
gas markets. Bulgaria should also strengthen the independence
of the national regulatory authority and its
administrative capacity in the energy sector, says the report.