The amendments to the Energy Act of June 2020 introduce an obligation for all business consumers to enter the liberalized market from October 1, 2020. This means that even the smallest businesses such as shops, cafes, law firms, etc. will have conclude a supply contract with an electricity trader on the liberalized market. In order to inform the customers about their participation on the liberalized market the Association of Traders with Electricity in Bulgaria (ATEB) has prepared answers to some of the most important questions.
How to enter the liberalized market?
All you need to do to enter the liberalized market is: first to contact an electricity trading company (electricity trader) and second to sign a contract for purchase and sale of electricity with the company. Then the company will make the transfer from regulated (tariff) to liberalized market. Through the contract concluded with the trader, you allow him to submit on your behalf an application for initial registration on the liberalized market, as well as to conclude contract with the relevant network operator and with the supplier of last resort (SoLR). Before concluding the contract with the trader, he will ask you for additional information regarding: the sites that will be supplied; client’s number; data on consumption and other information if necessary. It is important to pay all your electricity bill to your previous supplier so that you can enter the liberalized market.
What contract do I sign with the electricity trader?
The contract is for purchase and sale of electricity, but for most customers, traders will offer a combined contract, which includes the purchase and sale of electricity, participation in a standard balancing group and payment for network services. Through this combined contract, you agree that the trader will supply you with electricity, provide balancing services and be entitled to collect network and other fees that are part of the electricity bill.
What happens if I do not sign a contract with an electricity trader?
In case you have not concluded a contract with an electricity trader by September 30, 2020 inclusive, the supply of electricity from October 1, 2020 will continue to be performed by your current supplier on the regulated market, but he will act as an “electricity trader” on the liberalized market. For this to happen, however, you need to sign a standard supply contract with him. The model of a standard contract will be defined by the Energy and Water Regulatory Commission by 31.08.2020. The validity of the standard contract will be until June 30, 2021. After this date you will have to sign a contract with a trader on the liberalized market. If for some reason you do not enter into such a contract, you will be supplied by a Supplier of Last Resort (SoLR). Keep in mind that the prices at which SoLR sells electricity are significantly higher than those on the liberalized or regulated (tariff) market. Therefore, if you are supplied by SoLR, we advise you to switch to a trader on the liberalized market as soon as possible to get a fair price.
How are payments made on the liberalized market?
Most often, payments are made by a bank transfer or through payment service companies (e.g. EasyPay) within a few days of receiving the invoice. If the customer does not pay for the electricity, the trader has the right to request from the network operator to suspend the electricity supply of the site belonging to the customer. The electricity prices are negotiated between the customer and the trader and are part of the contract or appendix to it. In addition to the price of electricity, customers on the liberalized market also pay network fees (transmission and access to the transmission and distribution network), the fee Obligation to society, balancing costs, excise duty (2 BGN/MWh) and VAT. All these additional fees have been paid by the customers on the regulated market. An exception is the fee ” Obligation to society ” (OS), which was not included in the invoice on the regulated market, but was part of the price of electricity. On the liberalized market, the OS is paid separately and it is not included in the price of electricity. On the liberalized market, most traders offer a price for electricity with balancing costs included. This means that on the liberalized market in most cases the cost of this service will be included in the electricity price and will not appear as a separate row in the invoice.
What deadlines do I have to comply with?
- The contract with the electricity trader must be concluded by the 10th of the current month in order for the trader to submit the application for entering the liberalized market. If the application is submitted by the 10th of the current month, the change will take effect on the 1st of the following month. Hence, if you plan to enter the liberalized market from October 1, the deadline for concluding a contract with an electricity trader is September 10, 2020.
- The duration of the contracts offered by the traders is usually 1 year. It is possible to negotiate with the trader shorter or longer period of validity of the contract.
What will be the price for electricity?
Most retailers offer two types of contracts. Some have a fixed price of electricity for the whole contractual period. The others have a variable (exchange) price, ie. the prices correspond to the hourly prices on the Day-ahead market of the Bulgarian Independent Energy Exchange (IBEX). This means that for each day for each hour you will pay a different price, which corresponds to the sport market prices for the respective day and hour. Under this type of contract, traders also charge a fee for the service of purchasing electricity from the power exchange and delivering it to the consumer. Usually the customer negotiates only the amount of this fee with his trader. This type of contract is often called “Exchange +”. The liberalized market is a market at freely negotiated prices, so it is possible to negotiate other price plans other than those explained. For example, the two tariff price – day and night prices and other options.
How do I contact an electricity trader?
The Association of Traders with Electricity in Bulgaria unites some of the leading traders in the country. Below are the contacts of ATEB members who supply to end consumers in Bulgaria. To submit an inquiry, we advise you to use their emails or fill out the special forms available on their websites.
|EVN Trading SEE EAD||0700 1 email@example.com||https://www.evn-trading.com/|
|El Bonus EOOD||02/815 firstname.lastname@example.org||https://elbonusbg.com/|
|Energeo EOOD||02/902 email@example.com||http://energeo.bg/|
|Energy Market AD||02/983 firstname.lastname@example.org||https://energymarketad.com/|
|Energy MT EAD||02/462 email@example.com||http://www.emtbg.com/|
|Energo-Pro Energy Services EADfirstname.lastname@example.org||https://www.energo-pro-energyservices.bg/|
|Zagora Energy EOOD||042 985 email@example.com||http://zagora-energy.com/|
|MET Energy Trading Bulgaria EAD||02/850 firstname.lastname@example.org||https://bg.met.com/en/|
|Ritam-4-TB OOD||0700 47 email@example.com||https://ritam4tb.com/|
|CEZ Trade Bulgaria EAD||02/895 firstname.lastname@example.org||https://www.cez-trade.bg/|
Complete list of retailers is published on the EWRC website: https://www.dker.bg/bg/spisk-na-litsenzirani-trgovtsi-na-elektricheska-energiya-na-svobodniya-pazar.html
At the end of the year EWRC is expected to launch Price comparison tool for comparing electricity tariffs on the liberalized market.