site.btaLegislative Amendments to Draw Electricity Producers to Free Market

Sofia, February 6 (BTA) - Emerging from a meeting of employers and experts with Prime Minister Boyko Borissov Tuesday, Chairman of the parliamentary Energy Committee Delyan Dobrev said that speedy legislative amendments will draw electricity producers on the free market. Dobrev described the meeting as very productive and said that agreement was reached about "deep reforms" in the energy sector.

The MP said that thermo-electric power plants, in-house power plants, producers of electricity from renewable energy sources above 5 MW will come on the free market. The amendments are expected to be ready by the start of March and take effect as of the start of July. According to Dobrev, the move is expected to increase the liquidity on the free market and yield "a real, market price of electricity".

Dobrev said that the prices on the free market will be for daytime and night-time electricity consumption, whereas the prices now are for 24-hour use. In this way, companies who want to buy electricity for only night-time consumption will be able to do so.

Dobrev said that the agreements on preferential prices with the ContourGlobal and AES Gulubovo power plants will be terminated. He said that communication is underway with the European Commission on termination of these agreements while the government is committed to speeding up the talks and terminating the agreements within a fairly short time so that these companies sell on the free market.

The next change that is planned is for electricity-distribution companies to buy technological losses of power also on the free market, Dobrev said.

The MP noted that the amendments will liberalize the free market almost fully, without this affecting households as no changes are contemplated for the price of electricity on the regulated market.

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The National Energy Chamber (NEC), which represents more than 50 per cent of installed energy capacities in Bulgaria and more than 70 per cent of the employees in private energy businesses, took a stand against the demands by employers' organizations for the resignation of Energy Minister Temenouzhka Petkova, NEC said in a position released to the media Tuesday.

On Monday four employers' organizations demanded Petkova's resignation over the increase in the wholesale price of electricity on the free market, her alleged inability to handle the problems in the energy sector and the abandoned reforms.

In the position NEC says it favours consistent efforts for protection of the interests of the Bulgarian energy sector during the EU discussions on the Fourth Energy Package, "and not destabilization and calls for resignation" during the Bulgarian EU Presidency.

The private investors in energy support the efforts of the government towards modernization and full liberalization of the electricity market in Bulgaria, and urge whereby disputable issues are discussed in a responsible and sensible way, on a level playing field for all participants in the process.