The state-owned TPP Maritsa East 2 can generate revenues from the sale of electricity on the Day Ahead market at the current high prices observed in the segment. This is the opinion of the experts from the Bulgarian Federation of Industrial Energy Consumers, who came out with their position on the high prices of electricity on the free market. According to them, these high prices put serious pressure on Bulgarian industry. “The price of electricity in Bulgaria per delivery day July 30, 2021 once again marks a record value and once again in recent months is one of the highest in Europe.
The achieved average price of the market segment "day-ahead" of the IBEX for July 30, 2021 amounts to BGN 251.78 / MWh. The price for a day earlier - July 29, 2021 - amounts to BGN 238.67 / MWh, and for July 28, 2021 - BGN -232.02 / MWh. Price levels in recent months have put serious pressure on Bulgarian industry. The price differences with the countries in Western Europe are also worrying. For comparison, the achieved prices for July 30, 2021 are: in France -42.67 EUR / MWh; Germany -64.81 EUR / MWh; and Belgium - EUR 35.55 / MWh. This calls into question the competitiveness of the Bulgarian industry in relation to the Western European one both on the internal market of the EU and on third markets”, BFIEC explains.
They add that even if it is possible to influence the market fundamentals, "we would like to express our concerns about the low activity of TPP" Maritsa-East 2 "EAD in the market segment" day-ahead "of IBEX EAD, despite the market situation in Europe, leading to rising electricity prices in recent months.
BFIEC understands the position of the Minister of Energy as a principal of BEH EAD, respectively of TPP Maritza-Iztok 2 EAD, for setting a production quota of 1 TWh for a regulated market, which led to an increase in the price of “liabilities to society” for all consumers, but we expect that with such market signals of the IBEX the plant will actively participate in the market. By offering quantities on an organized stock market, on the one hand the plant supports its liquidity and on the other hand it could realize the necessary revenues, ensuring its profit. In short, as the plant cannot rely mainly on the revenues from the production quota imposed on it for a regulated market, it should make a profit against work, especially when price signals allow it.
BFIEC appreciates the efforts made by the plant on a centralized market of "bilateral contracts" of IBEX EAD for offering long-term products. However, we believe that it is important for TPP Maritza East 2 EAD to take a more active position in the day-ahead segment, as this is the market segment that sets the reference price. The lack of supply by the plant is incomprehensible, given that the price levels of IBEX EAD for the last three days exceed the price set by the EWRC of TPP "Maritsa East 2" of BGN 220.83 / MWh.
We have repeatedly paid attention to this issue, as well as to the fact that this behavior of TPP "Maritsa East 2" EAD can be described as systematic - not to meet the market signals of the segment "day ahead".
In view of the described situation, the federation again insists on several changes related to the operation of the free energy market:
- Signing an agreement with BEH EAD to ensure mandatory quantities on the market until full liberalization and integration of the electricity market in our country;
- Accelerate the liberalization of supply;
- Providing the platform of BNEB EAD of standardized block products (base, peak and sub-peak load) for standardized time periods (eg six-month and annual);
- Creation of a separate market segment for bilateral trade on the exchange for large energy consumers, for which a proposal was made in 2019;
- Increase of the market control by EWRC.
A month ago, employers and unions had an emergency meeting with caretaker Prime Minister Stefan Yanev over high electricity prices. Then, for the first time at the IBEX in our country, a price of BGN 250 / MWh was achieved. Then it became clear that the Minister of Energy Andrey Zhivkov will issue an order for TPP "Maritsa East 2" to have a quota for operation on the regulated market. No such meeting has been officially announced today. And of course no one, except the management of BEH and TPP "Maritsa East 2", can force the plant to ignite a new unit to operate on the free market.