On June 26, 2020, the amendments to the Energy Act (EA) were published in the State Gazette. From October 1, 2020 all economic operators must switch to the free electricity market. This is another step towards full liberalization. In this regard, it is necessary by September 10, 2020 at the latest. all legal entities to choose their new supplier, ie electricity trader company and sign a contract with him. In the event that as of October 1, 2020 some companies have not yet concluded a contract with a trader of electricity at freely negotiated prices, the supply of electricity will be carried out by their current supplier, namely the electricity supply company CEZ Electro, EVN Elektrosnabdyavane or Energy-pro Sales.
The amendments in the Energy Act include the following:
- All non-household (business) consumers enter the liberalized market from 1.10.2020
- Within 30 days, the end suppliers EVN, CEZ and ENERGO-PRO must inform each of their customers that they must choose a new supplier from the free market.
- If by 30.09.2020 the business consumers have not concluded a contract with an electricity trader, they shall conclude a standard contract for delivery with their current end supplier till 30.06.2021. The standard contract shall be defined by the Energy and water regulatory commission (EWRC).
- By 27.07.2020, the end suppliers have to publish on their websites a list of non-household consumers that must enter the liberalized market.
- EWRC must create a free platform for comparing offers from electricity traders for customers with consumption up to 100,000 kWh / year by 31 December 2020.
- Traders who do not provide monthly information about their offers for end customers with a consumption of 100,000 kWh / year are subject to a sanction between 5,000 and 50,000 BGN.
- The complete liberalization of the wholesale electricity market should be completed by June 1, 2021.
- From 1.01.2021 natural gas traders submit to the EWRC an application for issuance of a license for trading with natural gas. From October 1, trading natural gas will be carried out only on the basis of the issued license
Due to the changes in the Energy Act EWRC will issue a new price decision on the regulated prices, which decision won’t be a subject to public consultation.
| How to enter the liberalized (free) market?
1. Choose an electricity trader operating on the free market and contact him; 2. Provide a description of the sites to be supplied. The trader will give you clarifications about the specific information you need to submit; 3. If you are renting the property, the consent of the owner is required; 4. By the 10th of the month you must conclude a delivery contract with the trader of your choice; 5. The trader completes registration procedure and concludes all necessary contracts on your behalf; 6. From the beginning of the next month you are already on the free market and you are supplied by the selected trader. |
Source: State Gazette, 3e-news