site.btaElectricity Price to Increase by Up to 10%, Energy Regulator Chair Forecasts

Electricity Price to Increase by Up to 10%, Energy Regulator Chair Forecasts

Sofia, September 17 (BTA) - The electricity price will
definitely go up as of October 1, but the increase will not
exceed 10 per cent, Svetla Todorova, Chair of the State Energy
and Water Regulatory Commission (SEWRC), told journalists on
Wednesday.

Todorova underscored that she does not want to speak in advance
on behalf of the whole SEWRC but, taking a journalist's
question, she forecast that the price increase will be under 10
per cent.

There will not be major changes in the pricing model because the
time available is extremely little, she said. Todorova noted
that SEWRC's main task now is to compensate to some extent the
deficits in the energy system. Asked whether these deficits were
accumulated during the previous SEWRC leadership, she said that
various heads of the Commission have introduced electricity
price reductions and each former SEWRC head has worked in
accordance with his or her understanding of his or her
obligations.

Todorova said that the National Electricity Company (NEK)
submits contradictory information to SEWRC and that the amount
of the company's deficit is still being specified. According to
her, NEK lacks a regulatory accountancy which would allow for an
easy check of the information which SEWRC needs. Asked what the
energy regulator will do to make NEK pay its contractors,
Todorova said that the increase of electricity prices is aimed
at reducing the sums owed by NEK.

In order to clear the deficits in the energy system, however,
SEWRC will seek additional options. A key reason for the high
electricity prices are the long-term agreements with the thermal
power plants AES Maritsa Iztok 1 and Contour Global Maritsa
Iztok 3, as well as the agreements with renewable energy
producers for buying out green energy, Todorova explained. In
her words, these agreements are "iron" in the legal sense and
the investors will protect their rights if the State tries to
force them to reduce the prices. Therefore, negotiations should
be held where NEK and the power plants will be offered a level
playing field, the SEWRC Chair said.

Such talks and meetings are already being held with AES, and
the energy regulator is about to meet the company's regional
manager for Europe, Todorova said. Commenting on the agreements
with the renewable energy producers, she said that all previous
mistakes made by SEWRC should be avoided. She noted that in 2014
alone there have been 350 legal cases against SEWRC decisions
and the Commission's legal committee is completely occupied with
this matter instead of dedicating its time to regulatory
issues.

The audit of the renewable energy sector, launched by the
previous SEWRC leadership, is still being conducted but it is
impossible to review all the agreements concluded with the
renewable energy producers, Todorova told journalists.