The Energy and Water Regulatory Commission (EWRC) adopted an amendment to the Methodology for determining the electricity prices of suppliers of last resort (SLR). The change will cover 250,000 companies that have not selected a supplier of electricity on the liberalized market and are supplied by a SLR.
The changes in the Methodology are aimed at small and medium business consumers who are on the liberalized electricity market. This is the most expensive way of supply, which has “penalty” prices in order to encourage consumers to enter into a contract with an electricity supplier.
The adopted changes in the Methodology change the formula for determining the price of electricity from SLR, which will potentially allow the bills of non-household consumers supplied by SLR to be reduced by 15 BGN to BGN 30 per MWh. The measure will be short-term and will be valid for 3 months, starting from November 1, 2021, during which time consumers will be encouraged to enter into contracts with electricity suppliers on the liberalized market in order not to pay lower prices than those of SLR.
Цдпи = (90%*Цпдн + 10%*Цнбп)*(1 + Кд)
Цдпи – SLR average selling price of electricity, in BGN / MWh;
Цпдн – hourly price of electricity on the DAM of IBEX, in BGN / MWh;
Цнбп – hourly price for shortage on the balancing market, in BGN / MWh;
Кд – the component for the activity “supply of electricity from SLR” = 5% (however, it cannot exceed 10 BGN/MWh).
According to the Methodology, the average selling price of electricity of SLR is tied to the price of electricity on the market segment “Day ahead” of the organized electricity market, including the component for the activity “supply of electricity from SLR”. With the adopted amendments, for the specified 3-month period, this component will amount to 5 percent, but not more than 10 BGN / MWh, which will reduce the average selling prices of SLR. Another possibility for the potential discounts is the change of the coefficients Цпдн and Цнбп, which were initially 80% and 20%, currently the share of more expensive balancing energy is reduced by 10%.