Bulgarian Watchdog Mulls Ceiling on Prices Paid to Power Generators

Bulgaria's State Commission for Energy and Water Regulation (DKEVR) proposes introducing a ceiling on prices paid to power generators.

According to DKEVR, the tariff should be capped at BGN 202 per MWh, which is the highest amount paid for the balancing of the energy system.

The proposal is part of a draft decision of DKEVR.

The price is nearly 8.5 times lower than the highest rates at present.

At present, Bulgaria's National Electric Company (NEK) pays up to BGN 1700/MWh to some power plants when there is a shortfall in the system.

According to data of the Electricity System Operator (ESO), such shortfalls have started occurring all of a sudden during the nighttime since the summer of 2014, which is why DKEVR intends to reconsider pricing.

DKEVR is to introduce two other thresholds, according to reports of Trud daily, including one on the sale of electricity in the case of a surplus on the market and with the participation of pumped-storage plants like the Chaira Pumped Storage Hydro Power Plant. In this case, the price is BGN 30/MWh.

Up until 2014, the balancing of the energy system was included in electricity prices, while now it is billed as a surcharge for all household consumers and it has a different value each month.