ENERGO-PRO: Urgent measures are needed to compensate network operators in a timely manner

For immediate action by the state in relation to solving the problem of the growing crisis in electricity distribution companies, ENERGO-PRO will insist during the upcoming meeting with the Minister of Energy at the end of this week. Currently, ERP North buys the technology losses on the network at a price three times higher than the estimated price set by the EWRC. The problem is common to all network operators in the sector. This energy is purchased from the exchange in the “Day ahead” segment according to regulatory requirements.

The losses started in the third quarter of this year and the difference between the approved costs of purchasing power to cover the grid losses and the real costs for the ERP North will be over BGN 42 million by the end of the year. The difference between the approved price for energy of 131.21 BGN/MWh and the one actually traded on the exchange is over 350 BGN/MWh. This will lead to major liquidity problems for electricity distribution companies and the need for an urgent adjustment of network tariffs. If not compensated now, these additional costs will put a serious strain on the tariffs of all end customers, including households, in the middle of next year and will lead to a significant increase in the final price of electricity for consumers as well.

Meanwhile, the operational work of the distribution company is severely hampered by the rising prices of all goods and services in the country, it is not competitive in the labor market, which in the medium and long term is a prerequisite for reduced quality of work and will negatively affect all users of our services. Due to the looming liquidity crisis in the operation of distribution companies, the implementation of investment programs is also threatened, which in turn will lead to increasing problems with the supply and quality of electricity for all users.

ENERGO-PRO is in constant dialogue with the responsible institutions on possible urgent measures to reach workable solutions to deal with the crisis. The way out of the situation lies in the hands of the responsible political and regulatory institutions. The inability to change the legislation requires that various other options be sought, such as compensation for the cost of purchasing energy to cover network losses, as well as timely adjustment of the costs approved by the regulator from the beginning of next year.