Letter from AOBE for electricity prices




Minister of Energy


National representative employers’ organizations – BICA, BIA, BCCI and CEIBG whose members employ 82% of employees in Bulgaria and generate 86% of gross value added in the country anxiously monitor what is happening in the free market segment “Day ahead” of the electricity market. Our productions are exposed to strong competitive pressure on European and international markets. What is happening with electricity prices further jeopardize production growth, investment and competitiveness of the industry.
Lacking any effort to reduce the cost of government headquarters in NPP, “Maritza East 2″ EAD and NEK and ensure that they are at least medium-term future. Extremely inefficient management of state waters plants on the one hand, to higher prices on the open electricity market, on the other – to high losses of some plants. We categorically declare that the combination of this transfer of energy problems to the industry on the one hand, and shrinking business consumption, on the other hand, would be detrimental to the economy of Bulgaria.
The high prices of recent days are caused by sharp declines in the supply of electricity from NEK. To 07.05.2019, the supply of NEC is 13 477 MWh, the price is 79.41 lev for MWh. To 05.08.2019, the supply of NEC is ONLY for 4309 MWh, which forms the price of 164.60 lev to 09/05/2019, NEK again offers 4309 MWh and the price is 130.56 lev What have shrinking supply energy from the NEC over three times? Why NEC continues to offer quantities are insufficient? Indeed, the companies in the composition of the Bulgarian Energy Holding comply with commitments to the European Commission to ensure minimum liquidity, but their formal limit to the approved levels in the short term supply obviously leads to deficits in trading volumes of the free market and the unjustified high prices.
There are barriers to imports of electricity! Slowed down the introduction of an integrated market “Intraday” and consumers are left gravity of moods in state power and in particular NEK. Prices range from 100 to 210 lev / MWh for peak electricity within two consecutive days on market “Day Ahead”, while “compensation” unmet demand market segment “During the day” ended on 08/05/2019, the and prices in excess of 247 lev / MWh at only 451 MWh traded volume for 24 hours!
As representatives of employers from the industrial sector, we:
1. We strongly oppose the inadequate behavior of NEK, which is systematic and apparently will not change without a change of leadership.
2. We demand to overcome the artificial deficit as BEH subsidiaries are bidding on the “day ahead” adequate amounts in pricing structure analogous to approved the engagement with the European Commission. We appreciate this deficit of about 80-100 MW, which is even below the capacity of the small block of “Maritsa East 2″.
3. This restructuring of NEK EAD by separating the activities of public supply and production and marketing of electricity in order to avoid manipulations.

4. We demand the creation of conditions for effective competition between electricity producers, taking measures to restructure the public sector in the energy market integration with neighboring countries in all market segments.

5. We demand adequate compensation for industry, incl. indirect emission costs.

6. Given the need for issuance of Order e-RD-16-193 / 04.09.2019 of the Minister of Energy, which instead provide electricity for the free market, engage 600 000 MWh to 06/30/2019, from ” TPP Maritsa east 2 “for a regulated market, which only two months seized tens of millions Levs of the Fund” security of the electricity system, “insisting to organize a thorough examination at NEC and EDC (incl. signaling KEVR and Prosecution) real causes of the premature exhaustion of the quota provided electr energy for the regulated market.