site.btaEnergy Regulator Chief: Legislative Changes Are Drafted to Make Regulator More Independent

110 ECONOMY-SEWRC-BUDGET-LAW-RES

Energy Regulator Chief:
Legislative Changes Are Drafted
to Make Regulator More Independent


Sofia, October 8 (BTA) - State Energy and Water Regulatory
Commission Chair Svetla Todorova told journalists on Wednesday
that legislative changes are drafted that will make the
regulator more independent. Todorova was involved as an expert
when the bill was drafted under the previous caretaker
government.

Under the changes, the members of the energy regulator will be
elected by the National Assembly and the chair and the six
members will have equal powers.

Todorova said that the regulator has run up a deficit of some
700,000 leva, mainly due to the audits of the power distribution
companies it conducted.

Under the law, the audits are paid for by the energy companies
but the money has been transferred to the central budget. The
Commission also has to pay some 100,000 leva in legal costs. The
Commission's budget for 2014 is 3.9 million leva, but a total
of 15 per cent have been set aside as a reserve.

Todorova said that the Commission is negotiating two agreements
with the World Bank and the European bank for Reconstruction and
Development to boost its capacity.

Of the long-term power purchase agreements with the two US-owned
Maritsa East 1 and Maritsa East 3 thermal power plants,
Todorova said that they may be extended. However, she speculated
that the owners would want to keep the current rate of return.
According to her, it is a matter of calculation whether to
decrease the prices or extend the agreements. She said that the
regulator has laid the ground for a regular government to begin
negotiations.

It is possible that RES producers may be asked to extend their
agreements or to pay a fee which will be used to pay energy
allowances.

Also, Todorova said that a number of changes are considered to
the rules governing the balancing market. LI/PP