site.btaDraft Revisions Envisage Full Liberalisation of Wholesale Electricity Market by End-2023, Households on Regulated Market until 2026

Key changes in the Energy Act, which have been published for public consultation, envisage full liberalisation of the wholesale electricity market by the end of 2023 while keeping household consumers on a regulated market until 2026, the Ministry of Energy said Thursday.

The role of the National Electricity Company (NEK) as a public supplier is to be terminated and the quotas of producers for the regulated market are to be abolished, the changes also envisage.

The bill introduces a definition and criteria for energy poverty, and priority treatment for these households when funding energy efficiency projects. 

This is a key step in the reform of the electricity market, the implementation of which will ensure the next payments that Bulgaria should receive under the National Recovery and Resilience Plan.

The bill implements the provisions of Directive 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amends Directive 2012/27/EU. 

In line with the regulation allowing for emergency intervention by the State to tackle high energy prices, the bill provides that regulated household prices can be set below cost in times of crisis. In such cases, the cost of final suppliers and traders are subject to compensation.