Anton Pavlov: An energy balance and investment estimate is needed in the sector to stabilize the energy
A real energy balance and investment estimate is required in the sector in order to achieve a stable energy function. Another major task is to adopt an energy strategy as the energy should not be considered by a piece. That said the Deputy Minister of Economy and Energy Anton Pavlov at the conference "Electricity market - infrastructure and services", organized by the Bulgarian Federation of Industrial Energy Consumers. Bulgaria has been working to set up a free electricity market for ten years, following 19 September 2004 the date when NPP "Kozloduy" began selling electricity to a private company. However, the results are not satisfactory neither for electricity producers nor for traders and consumers.
Pavlov announced that there were only 11 participants on the free electricity market in the country ten years ago. In 2013, they were already 2157, of which 9 manufacturers, 2096 consumers and 52 electricity traders, as the coordinators of standard balancing groups are 13. Last year, 1130 traders were licensed for electricity trade. In 2013, the quantities traded on the free market of consumers in the country have been increased by nearly 30% (6 871 571 MWh compared to 5 295 565 MWh in 2012), as the largest share is provided by NPP "Kozloduy" and TPP "Maritsa East 2".
The electricity market in Bulgaria working, but we should not stop here, said the Deputy Minister. We will continue to work as to ensure that the market liberalization is not only a commitment to the European Commission, but a task being executed in favor of the industry in Bulgaria. A smooth transition from regulated to freely negotiated prices should be ensured not only for industrial consumers but also for medium voltage costumers. Although there is not an organized electricity exchange, the foundation of balance market is laid. I hope that through the joint efforts of all participants the methods of its operation will be corrected and it will function actually, added Pavlov.
The Deputy Minister also drew attention to the role of the NEC as a public supplier and stressed that an inconsistent energy policy has been led over the last decade. This has resulted in accumulation of nearly BGN 3 billion deficit at the NEC. If the model for mandatory purchase of electricity at preferential prices is not changed, the NEC will generate about BGN 900 million more losses per year, said Pavlov. He added that the caretaker government took urgent measures to stabilize the sector. A dialogue with all market participants is hold and it is expected that each of them should make reasonable concessions. The increase in the price of electricity will only cover 1/5 of the losses of the NEC. But we are adamant that the Bulgarian households should not bear the burden of incompetent decisions made over the years.
As for the potential gas crisis, Deputy Minister Pavlov assured that the energy system will bear over load because we have enough production from the nuclear power plant and the thermal power plants in Maritsa basin. The crisis staff is actively working on the issue regarding the rhythm in gas supply for the country and for the supply of alternative fuel to our heating plants.