site.btaRegulator Proposes Fee on All Electricity Producers to Boost Energy Benefits

Regulator Proposes Fee on All Electricity Producers to Boost Energy Benefits

Sofia, October 21 (BTA) - State Energy and Water Regulatory
Commission chief Svetla Todorova on Tuesday suggested a fee for
all energy producers to collect more revenues to pay energy
benefits. Todorova was speaking to journalists after open
meetings of the commission.

Todorova said that elsewhere in Europe customers are charged a
small fee to collect revenues for social assistance. Unlike in
Europe, however, the commission plans to impose the charge on
producers, sparing the burden on households.

Todorova specified that the fee should be introduced only
through amendments to legislation and cannot be done
single-handedly by the regulator. To ensure fairness, the fee
should be charged on all producers and the law should provide
for that revenues will be set aside only for energy allowances.
Otherwise, there won't be any impact on the energy bills of less
well-off households, said Todorova.

She recalled that previously a 20 per cent charge levied on the
revenues of RES producers was overturned in court because of
unfair treatment of players on the energy market.

Estimates show that a 3 per cent fee will generate revenues
equal to the current energy allowance expenditures, which allow
allowances to double, said Todorova.

Approached about the operation of the balancing market, the
regulator chair said that currently the commission is doing its
best to improve the market regulations.

Before small businesses and households are given access to the
free market, the procedure for supplier selection should be
changed, because it is too cumbersome and trading rules are
incomprehensible to the general public, said Todorova.

Approached by BTA when small consumers will be given access to
the free market, Todorova said that this won't happen while
electricity prices are still regulated. She said that the
regulator has started an exchange with the European Commission
regarding possibilities to renegotiate long-term purchase
agreements with two US-owned thermal power plants (Maritsa East
1 and 3) and RES producers.