The price of TED's energy will not be announced in advance. It will be determined at the end of the period

The readiness for the general conditions of a supplier of last resort (DPI), the determination of the energy price, the risks related to the liquidity of the stock exchange and the request for a fixed cost component of these companies were among the issues raised in the public Methodology for determining the electricity prices of the Supplier of last resort ”, which was held online in EWRC.

The new methodology for determining the prices of electricity of the Supplier of Last Instance (DPI) radically changes the model, said the chairman of the working group at the Commission for Energy and Water Regulation (EWRC) Plamen Mladenovski.

"It is very clearly written in the methodology and I do not see a contradiction that the model that has been so far is changing radically. A price is not announced in advance, but is achieved ex post facto. The free market model has been used, in which a significant number of traders sell electricity, namely the stock exchange plus, "he said, expressing bewilderment at the misunderstanding.

"It is very clearly stated that the price is hourly, ie it depends on the profile of electricity consumption, as in the free market. However, let's not forget that the energy for TED in part of the free market ", added Mladenovski in response to a question from Daniel Petrol from NEK. In this sense, he clarified the question of equality of customers - "one customer who consumes only at peak hours can not be equated with another who consumes only at night, or only on weekends, when energy is almost twice as  cheap.

"The principle of the free market is very clearly followed here and energy should be invoiced at prices achieved on the stock exchange," that is, following the trend of the free market.

"Otherwise, we see distortions at the moment, in which it is more profitable for some customers with a predominant peak load to stay on the TED than to find a trader," Mladenovski explained.

In response to a question from CEZ's Zornitsa Genova regarding the general terms of the TED, the chair of the working group said that they were currently working and expressed an expectation that they would be available soon, but did not commit to a date.

Regarding the question of achieving liquidity on the stock exchange because of the energy for TED, Mladenovski stated that “there is no obligation for energy for TED to be bought from the stock exchange. There is only one obligation as to how the final price is priced. " According to the chairman of the working group, the current statement “purchase of energy with bilateral agreements between trade participants” remains in the draft methodology. Of course, if TEDs want to buy this energy from the free market, the current methodology does not bother them. They can buy wherever they want, "he said.

Earlier, in the framework of the questions asked, Anna Dimitrova from EVN, on the occasion of the low consumption of some of the clients, but while maintaining the administrative costs of the companies, made a proposal to determine a fixed component. "We believe that the methodology should allow more flexibility in order to cover some more specific TED cases and ensure the financial stability of these companies, for example - for example, the provision of energy from a balancing market for 72-hour samples or events such as trader bankruptcy Said Dimitrova.

On this occasion, Mladenovski explained that it could not happen. "This price of TED is determined in BGN / kWh. There is no way to define it as fixed plus how many levs per kilowatt hour. And whether it is a percentage or a fixed component, at zero consumption it will still be zero, "he said. At the same time, he acknowledged that yes, there will be some underfunding of costs, but this methodology "follows the same principle as end-suppliers".

Desislava Ruseva from ENERGO-PRO agreed with the need for clearer rules and mechanisms for determining the energy price of TED, but also asked for clarification regarding the formula in the part for the average market price of TED. "We believe that it should be calculated on the basis of the measured hourly profile, which is provided by ESO to the network operators for settlement purposes," she explained. It became clear from Mladenovski's explanations that the balancing costs should be covered by the price itself.

Opinions on the draft of a new methodology for the energy price of TED can be provided within 14 days, but EWRC Chairman Ivan Ivanov called on the companies to hurry so that the adjustments in the methodology can be made on time. The regulator will issue a decision after a closed meeting on June 29 this year.