Angel Semerdjiev Commissioner State Energy and Water Regulatory Commission Bulgaria Budapest, Hungary April 14, 2005 5 th Annual Meeting of the Energy.

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Presentation transcript:

Angel Semerdjiev Commissioner State Energy and Water Regulatory Commission Bulgaria Budapest, Hungary April 14, th Annual Meeting of the Energy Regulators Regional Association Country Update - Bulgaria

© Energy Regulators Regional Association 5 th Annual ERRA Meeting Budapest, Hungary, April 14, 2005 Slide 2 Key Events & Activities from May 2004 – April 2005 SERC became SEWRC as per Water & Sewage Services Regulation Act, effective 20/01/2005 Secondary legislation and relevant administrative acts under the Energy Act drafted and adopted by SEWRC Electricity market effectively open and conditions created for natural gas liberalization EDPs privatized under SEWRC regulatory framework Tenders for gas distribution regions Participation in preparation and establishment of Energy Community in South-East Europe and in ERRA activities

© Energy Regulators Regional Association 5 th Annual ERRA Meeting Budapest, Hungary, April 14, 2005 Slide 3 Key Events & Activities from May 2004 – April 2005 Secondary legislation and relevant administrative acts under the Energy Act adopted by SEWRC Ordinances and instructions on electricity, heat and natural gas tariff regulation and setting Quality of service indicators for three sectors Set of Electricity Market Operation Rules

© Energy Regulators Regional Association 5 th Annual ERRA Meeting Budapest, Hungary, April 14, 2005 Slide 4 Key Events & Activities from May 2004 – April 2005 Electricity market effectively open and conditions created for natural gas liberalization First electricity deals – 18/09/2004 (Kozlodui NPP & Yumikor Med AD) Open Market Share - 22% of total consumption, Open Market Volume as of Jan/ % of total consumption. Electricity Public Provision, Public Supply & Trade Licenses issued. Natural Gas Distribution, Public Provision & Public Supply Licenses issued to 37 Gas Distribution companies.

© Energy Regulators Regional Association 5 th Annual ERRA Meeting Budapest, Hungary, April 14, 2005 Slide 5 Key Events & Activities from May 2004 – April 2005 SEWRC determined the license holders for Dobrudja, Mizia & Trakia regions and issued Natural Gas Distribution & Public Supply Licenses. SEWRC launched tender procedures for Dunav & Zapad regions; it prepares for Struma region.

© Energy Regulators Regional Association 5 th Annual ERRA Meeting Budapest, Hungary, April 14, 2005 Slide 6 Key Anticipated Issues & Activities for the Next Year SEWRC regulation scope extended to cover Water & Sewage services (tariffs and quality of service). Drafting of secondary legislation forthcoming. Green Certificates (GC) – a guarantees of origin register developed; registers for GC, GC deals & GC sale applications being prepared. As of 01/07/2005 electricity market to extend to 25% with anticipated 20 eligible customers.

© Energy Regulators Regional Association 5 th Annual ERRA Meeting Budapest, Hungary, April 14, 2005 Slide 7 Key Anticipated Issues & Activities for the Next Year Thermal Power Plants Privatization – finalize process, regulatory frameworks Quality of service – adopt criteria per companies (in licenses) and conduct supervision Participation of SEWRC in setting up of energy market in South-East Europe

© Energy Regulators Regional Association 5 th Annual ERRA Meeting Budapest, Hungary, April 14, 2005 Slide 8 Key Issues & Status of Tariff Methodologies & Levels Basic methods for electricity, natural gas and heat energy price regulation used in the Ordinances: Incentive regulation (price caps, revenue caps); Rate of return on equity; Regulation through “net present value” (for the gas distribution companies without built networks) Third stage in the Timetable for increasing the electricity tariffs for household users completed.

© Energy Regulators Regional Association 5 th Annual ERRA Meeting Budapest, Hungary, April 14, 2005 Slide 9 Key Issues & Status of Tariff Methodologies & Levels Two-part tariff for household electricity users retained. Timetable for gradual abolishment to be adopted. Unified accounting system for electricity distribution companies approved for implementation in Natural gas transmission & distribution prices cover costs. No subsidies for heat energy for household needs as of early 2005.