EWRC report on prices for the new regulatory period

EWRC announced its draft report on the regulated prices for the new period between 1.07.2020 and 30.06.2021. The presented document does not take into consideration the government`s plan to bring all business consumers to the liberalized market. As a result, the estimated quantities for a regulated market have been increased and equal 14,320,886 MWh. It is expected that, if the Bill is adopted, the share of the regulated market will be limited only to household consumers. The required volumes to cover their consumption are estimated between 10,000,000 MWh and 10,500,000 MWh.

The estimated market price proposed 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:

  • 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

 

TPP Maritsa East 2 does not have a quota for the regulated market, and the price of electricity produced by the plant is estimated at 135.95 BGN/MWh. The main power plants that will supply electricity to cover the demand on the regulated market are AES Maritsa East 1, ContourGlobal Maritsa East 3, NEK HPP, Kozloduy NPP, Cogeneration and RES producers below 1 MW. The largest quantity is planned to be generated by ContourGlobal, followed by Kozloduy NPP. The quota of the nuclear power plant is determined by months, and varies significantly on monthly basis. In the spring and summer months the generation will be between 124 and 486 MW, while in the winter it will exceed 900 MW. The situation was similar during the last regulatory period, which led to limited supply on the free market by Kozloduy NPP during the winter months. As a result, the required quantities were provided by imports and Bulgaria became a net importer in January. In the same month the prices on the Bulgarian power exchange were among the highest in Europe, reaching an average of 107.57 BGN/MWh.

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The report proposes a change in the Obligations to society fee from the current 19.57 BGN/MWh to 19.18 BGN/MWh.

There are also changes in the network fees 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 – 10.25 BGN/MWh

 

The changes in the prices for the household consumers are negligible within less than 1%, with the exception of Energo-Pro Sales, where the reduction of the prices is by 1.69%.

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The public discussion on the report will be held on 04.06.2020 at 10:00 in EWRC. The full report on the proposed tariffs for the regulated market is available at:

https://www.dker.bg/uploads/_CGCalendar/2020/rep_ceni_electro_29052020.pdf

Source: Energy and Water Regulatory Commission