Industrial Energy Consumers in Bulgaria Demand Energy Road Map

Energy | July 17, 2013, Wednesday // 18:02|  views

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The Bulgarian Federation of Industrial Energy Consumers (BFIEC) has demanded a "roadmap" offering sustainable long-term solutions to the energy problems which takes into account the recommendations of the European Commission and the World Bank on energy sector reform.

BFIEC, as cited by, demands that the energy sector roadmap be prepared within one or two months.

In a letter to Anzhela Toneva, Chair of Bulgaria's State Energy and Water Regulatory Commission, DKEVR, the Federation argues that the changes to the electricity price formation model scheduled to take effect on August 1 are short-term solutions.

BFIEC expresses support for the price formation mechanism for electricity supplies sold by last instance suppliers to companies on the free market.

BFIEC approves the 3% markup stipulated in the draft document, opposing calls of power distributors (which will act as last instance suppliers) that the markup should be 5-8% in order to cover operating costs for the service.

Industrial energy consumers argue that a markup higher than 3% will place a burden on small and medium-sized enterprises, while last instance suppliers, such as the three power distributors (CEZ, EVN, and Energo Pro) and the National Electricity Company (NEK), can cushion its impact because they have a range of other services on offer and they can cut costs by boosting managerial efficiency.

BFIEC also backs the calls of NEK for the introduction of a ceiling on renewable energy costs for which NEK will reimburse power distributors per pricing period.

The Federation, however, demands a clear model for the calculation of the ceiling that takes into account the financial condition and the investment program of NEK.

BFIEC also supports the proposal of the three power distributors operating in Bulgaria, CEZ, EVN and Energy Pro, for the introduction of clear rules and procedures for imposing restrictions on the output of renewable energy plants.

BFIEC also insists that DKEVR must come up with an economic justification of the elimination of the so-called green and brown surcharges and the unrecoverable expenses under long-term contracts for purchasing electricity.

The Federation asks the energy watchdog to explicitly define the model, amount, terms, and starting date for the payment of the surcharges outside the transmission price.

BFIEK demands DKEVR categorically define the model, amount, the starting date and the payment conditions on supplements outside the grid supply fare.

The Federation also echoes the calls of the Bulgarian Wind Energy Association for a change to the model and method of accounting for the weight of the different renewable energy technologies (sun, wind, etc) and for greater transparency so as to boost awareness of their cost-effectiveness and contribution.

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Tags: Bulgarian Federation of Industrial Energy Consumers, power distributors, National Electric Company, DKEVR, State Commission for Energy and Water Regulation, renewable energy


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