The Energy and Water Regulatory Commission (EWRC) published its draft decision for regulated prices in the Electricity sector for the period 01.07.2021 / 30.06.2022. The authors of the project from the EWRC working group state that “at present there is no data from the platforms of the Independent Bulgarian Energy Exchange EAD (BNEB EAD), on the basis of which an objective analysis should be prepared to determine the estimated market price for the period 01.07.2021 – 30.06.2022. No auctions with a delivery period coinciding with the regulatory period have been held on the “Auctions” platform of IBEX EAD. On 31.03.2021 on the platform “Auctions” of IBEXEAD was held an auction for 20 MW, with a delivery period coinciding with the first half of the next regulatory period, at which a price of 111.50 BGN / MWh was achieved.”
As a result, EWRC reviews electricity futures on three markets (Bulgarian, Romanian and Hungarian), and the report states that “As can be seen from the above data, the achieved prices for the individual quarters are extremely close and comparable, as the average prices for the second half of 2021 and the first half of 2022 are at levels around 65-67 € / MWh. The analysis of the prices since the beginning of 2021 on the regional markets shows that on the platform “Day ahead” of IBEX EAD the average price is in the range of about 2-3 € / MWh lower than that on the Hungarian market, ie. . should be at levels around 63-64 € / MWh”
Thus, EWRC set an estimated market price for the period 01.07.2021 / 30.06.2022 of 119 BGN / MWh for baseload electricity. The current regulatory price is 90 BGN / MWh or the increase is by 32%. Based on this price and taking into account the coefficient that reflects the technological specifics of consumption or production, the EWRC has proposed the following estimated market prices for:
– ESO – 124.85 BGN / MWh
– ERP – 131.27 BGN / MWh
Producers with premiums
– CHP – 125.07 BGN / MWh
– PV- 111.53 BGN / MWh
– Wind – 114.76 BGN / MWh
Regarding the power plants that will supply electricity to the regulated market, EWRC has identified 4 main suppliers – Kozloduy NPP, HPP owned by NEK, AES – 3C Maritza East 1, ContourGlobal Maritza East 3, joined by small producers from RES and CHP plants. The quantities of the selected producers on an annual basis to cover the needs of a regulated market reach approximately 11 TWh.
The state-owned TPP Maritza East 2 does not receive a production quota for the regulated market. The price of electricity from the TPP is estimated at 210.33 BGN / MWh. The regulated price of the plant exceeds by more than 10% the estimated market price (119 BGN / MWh), which does not allow the operation of the plant on the regulated segment. The main expense of TPP Maritsa East 2 are emission allowances, which exceed 2.5 times the costs of fuel for generation. According to the company’s report for 2020, the actual reported costs for the purchase of emission allowances amount to 104.99 BGN / MWh, while the EWRC has provided 55.94 BGN / MWh.
As a result of the increased national revenues from the sale of emissions allowances, the capital in Security of the electricity system fund (SES) will fully offset the cost for premiums for renewable energy producers and will mitigate higher production prices of the American thermal power plants and CHPs. As a result, the amount of the fee Obligations to society is significantly reduced, from 21.47 BGN / MWh to 4.02 BGN / MWh.
The prices for network services of the transmission operator – ESO remain almost unchanged:
– Access to the electricity transmission network for end consumers = 0.49 BGN / MWh
– Access to the electricity transmission network for producers = 2.42 BGN / MWh
– Access to the electricity transmission network for producers of renewable energy sources = 5.40 BGN / MWh
– Transmission through the electricity transmission network = 11.39 BGN / MWh
The final prices of electricity for household customers from July 1, 2021 will increase by an average of 3.02% suggests EWRC working group in its report. The proposal provides for an increase in the price of electricity as follows:
– For the customers of CEZ Electro Bulgaria – by 4.17%
– For the customers of EVN Bulgaria Elektrosnabdiavane- by 2.38%
– For the clients of ENERGO-PRO Sales – 2.13%.
– Discount is offered for the clients of “ESP Golden Sands” by 1.58%
The report of the working group with the draft decision for approval of prices in “Electricity” sector is published at (available only in Bulgarian): https://www.dker.bg/uploads/_CGCalendar/2021/rep-prices-electro-2021.pdf