On 01.07.2020 the Energy and Water Regulatory Commission (EWRC) announced its decision approving the prices in the Electricity sector. This decision of the EWRC was not subject to public discussion according to the newly adopted amendments to the Energy Act.
The estimated market price adopted by the EWRC for the new regulatory period is 90 BGN/MWh. Based on it, the estimated market prices of the different groups of RES producers are determined as well as the prices to cover technological losses of the TSO and the DSOs:
- estimated market price solar energy = 94.96 BGN/MWh
- estimated market price wind energy = 83.45 BGN/MWh
- estimated market price HPPs up to 10 MW = 90.95 BGN/MWh
- estimated market price biomass = 90.01 BGN/MWh
- estimated market price Cogeneration = 89.43 BGN/MWh
- estimated market price ESO = 92.74 BGN/MWh
- estimated market price DSOs = 94.18 BGN/MWh
The determined price of the electricity of TPP Maritsa East 2 is 135.95 BGN/MWh. It is too high to be part of the regulated electricity mix, but the Minister of Energy has issued Order № Е-РД-16-295 from 25.06.2020, that certain quantities of generated by the plant must be offered on a regulated market. With this order, the Minister of Energy has allocated to TPP Maritza East 2 EAD a total annual generation quota of 2,600,000 MWh, representing approximately 8.14% of the total primary energy consumed in the country in the calendar year 2019. According to the same order, the quota should be produced by TPP Maritza East 2 EAD for the period 01.07.2020 – 30.06.2021. These quantities should be purchased by the public supplier (NEK).
Compared to the draft price decision from June 2020, the quantities for the regulated market decreased by only 2.6 TWh from 14.3 TWh to 11.7 TWh.
The main power plants that will supply electricity for the needs of the regulated segment are AES Maritsa Iztok 1, ContourGlobal Maritsa Iztok 3, HPP owned by NEK, Kozloduy NPP, TPP Bobov Dol, TPP Maritsa Iztok 2, Cogeneration and RES producers under 1MW. The difference compared to the draft presented in June 2020 is the inclusion of TPP Maritsa East 2 and TPP Bobov Dol in the quota for the regulated market. The largest quantity is planned to be produced by TPP Maritza East 2, followed by AES Maritsa East 1, ContourGlobal Maritza East 3 and Kozloduy NPP. The quota of the nuclear power plant varies between 65 and 550 MW. During the winter months it is the highest (550 MW). TPP Maritsa East 2 will operate almost all year round at a load close to 300 MW. As a result of the electricity included in the mix, NEK`s average purchase price of electricity for a regulated market is 134.82 BGN/MWh, and the price at which NEK will sell electricity to end suppliers is 92.93 BGN/MWh.
Obligations to society fee changes from the current 19.57 BGN/MWh to 21.47 BGN/MWh.
There are also changes in the network tariffs paid to ESO:
- Fee access to the electricity transmission network for end customers – 0.45 BGN/MWh
- Fee access to the electricity transmission network for producers – 2.26 BGN/MWh
- Fee access to the electricity transmission network for producers of renewable energy sources – 5.28 BGN/MWh
- Fee transmission through the electricity transmission network – 10.30 BGN/MWh
There are also small changes in the tariffs for transmission and access charged by the distribution companies. The prices for household consumers rise with 2.79% on average.
The full report on the proposed tariffs for the regulated market is available at: https://www.dker.bg/uploads/reshenia/2020/res_c_29_20.pdf