Bulgaria: New costs and price management to be introduced in energy companies

30. May 2013. / SEE Energy News

Ways for expenses’ decrease by 239 million levs were found in many public companies and searching for more adequate reservoirs in national electricity industry of Bulgaria (NEK) is being continued in order to keep electricity price on current level from 1 July 2013- Minister of Economy and Energy, Asen Vasilev.

According to Vasilev’s words, TPP Marica Istok 2 has already suggested expenses’ decrease by 100 million levs, Kozloduj suggested expenses’ decrease by 50 million levs and Electricity Transmission System Operator (ESO) suggested expenses’ decrease by 9 million levs. Public companies found reservoirs of 239 million levs with decrease of mine Marica Istok expenses by 80 million levs. This will prevent electricity price increase since 1 Jul this year.

-Other participants in electricity system of the country, including NEK, continue look for ways for decreasing its expenses- Vasilev said.

According to his words, current situation is moving in right direction and there is some hope for preventing electricity price sine 1 July.

Vasilev says that the public company for energy and water regulating (DKEVR) is working on completely new model of forming prices where delivery of electricity from heating system won’t be included anymore, as well as green energy from renewable sources. Irrecoverable expenses of NEK from long term agreements for electricity from American TPPs in Marica Istok won’t be included also.

The goal of this methodology is to form electricity prices on commercial base without hiding expenses, but how this will be done remains to be discussed with this sector. According to Vasilev’s words, removal of all electricity price contributions without reflecting on final price for consumers will enable Bulgaria to launch electricity export.

Minister Vasilev says that this new model of forming electricity price will enable citizens to know what they’re paying for on the one side and that it will be appropriately distributed, not to go over additional deliveries and administrational procedures.

He added that additions in energy for import won’t be excluded only, but the whole methodology of forming prices will be changed.

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