site.btaProsecution Tasks Energy and Water Regulatory Commission to Assess Rules Regarding Rising Electricity and Heating Prices

July 6 (BTA) - The prosecution service on Tuesday asked the Energy and Water Regulatory Commission (EWRC) to assess whether changes in the rules for determining the price of heat are needed and to clarify how the increased electricity prices were formed.

The statement said that as early as June 28, the Supreme Administrative Prosecution Office (SAPO) began an investigation prompted by media reports related to the increase of heat and electricity prices. According to the prosecution, the publications suggest evidence of an illegal increase. In addition, the current regulation on price formation creates preconditions for unrealistic pricing to the detriment of end users.

The EWRC approved the electricity prices to be in effect during the next regulatory period from July 1, 2021 to June 30, 2022. After taking into account all pricing elements and applying the pricing methodology, the average price increase of electricity for consumers on the regulated market for the whole country is 4.40 per cent, the EWRC said on July 1.

The decision also approved the amount of 7.18 leva/ MWh, excluding VAT, as a public obligation surcharge, the proceeds from which are collected by the Electricity System Security Fund.

The main reason for the increase in electricity prices is the increased costs of the ESSF to compensate for the electricity produced by thermo-electric power plants and in-house plants, whose costs increase as well due to the higher prices of the primary fuel purchased by them - natural gas, as well as carbon emissions. As a result of higher emission prices, the price of electricity produced by the two power plants owned by US companies and the power generated by the Maritzs East-2 thermal power plant is rising, which is reflected in the increase in the public obligation surcharge.

The final decision of the regulator also took into account the additional increase in electricity after the inclusion of the Maritsa East-2 TPP in the mix for the regulated market with an annual quota of 1,000,000 MWh, according to an order of the Minister of Energy.

The prosecution service found that the increase in heat prices from July 1 is contrary to the Energy Act, according to which the production, transmission, distribution and trade of heat are carried out while ensuring the protection of consumer interests.

Due to significant public interest, SAPO wants the Chairman of the EWRC to determine as soon as possible whether actions have been taken to change the bylaws in connection with heat prices. RI/DT








/DT/