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The price spree of the ERPs is over –

/View.info/ There is no reason to increase the price of electricity. This was said by Elenko Bozhkov, a member of the State Commission for Energy and Water Regulation (DKEVR).

“Regardless of the wishes of the electricity distribution and electricity supply companies in the applications that they submitted to the State Energy Commission until March 31, at the moment we have no reason to predict an increase or decrease in the average price for the end user”, emphasizes Bozhkov and explains: The reason is in the recently completed regulatory company audits. They show results and data that are in sharp contradiction with the forecasts and reports presented by the ERPs. “DKEVR inspections are pending and ongoing in various subjects of the electricity sector – district heating companies, cogeneration companies, renewable energy sources. This will inevitably have an impact on the formulation of new prices from the summer. From July 1, the full introduction of the MMS system (system for the administration of market) for balancing energy This means that electricity shortages or surpluses start to be paid for by all market participants. to its customers and that this does not affect the final price of electricity. That is, those participating in both the regulated and balancing market, such as these companies, should not expect the State Energy Commission to recognize any additional balancing costs for them,” says he is also in front of “Standard”.

To the question “are there discrepancies in the forecasts of individual market participants”, Bozhkov answers: Yes, there are discrepancies. They are in the technology costs, about which representatives of the ERPs talk a lot, and which we as a commission can regulate or limit. “When the privatization contracts are concluded, limit values ​​are formulated in them, which give them the opportunity to fall into price sprees. For example, the rate of return is very high. Second, 5 years after privatization, they enjoy very high levels of technological costs. And what is the point of this? They save technological costs and thus realize revenues, which they then redirect.

“DKEVR is gradually starting to really regulate the activity of the ERAs. Their dissatisfaction is caused by the differences in the views we have about the technological losses. It is quite clear from the audits that the real technological losses are approximately constant and significantly smaller than those which we have confirmed. The ERPs reported a total of BGN 220 million more revenues than the ones confirmed for the period 2008-2012. In addition, they had a need for much less technological expenses compared to what they claimed and we confirmed for them For example, in 2008, “EVN Bulgaria Elektrorazpradelenie” reported 97 million BGN, in 2009 – 104 million BGN, in 2010 – 100 million, and in 2011 – 99 million. At the same time, according to their applications, we have approved between BGN 160 and 163 million. Thus, an income of around BGN 70 million is accumulated. They also talk a lot about the investments that we do not recognize the practice is that when a power producer or customer wants to connect to the grid, they are usually required to build a substation, overhead or cable line of varying lengths. And it is not about the installation required for the connection of the customer or electricity producer himself. Once they build them, they oblige them with procedural gripes that it goes into the connection price and the access price, which is paid with the electricity price. The ERP then becomes the owner of the facility and claims it as its own investment,” says Bozhkov.

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