Position of ENEGRO-PRO Varna expressed at public consultation on EWRC report on new energy prices

The proposed decision of the Commission for Energy and Water Regulation (EWRC) to change electricity prices of 1 July 2017 provides for a one-time seizure of ENERGO-PRO's revenue in connection with cold winter adjustments and investment costs. The decision does not allow for rescheduling to reduce the financial burden on the electricity distribution company, even though such is provided for in Article 38, paragraph 3 of the Electricity Price Regulation Ordinance.

At the same time, all the burden that the electricity distribution company and the final supplier bore during the period of peak loads in the cold winter, when they offered their customers to reschedule the bills, provided full assistance to the ESO and paid over BGN 2 million additional costs for balancing remains outside the calculations.

In recent years, ENERGO-PRO has made serious efforts and achieved a reduction in technological losses on the network by nearly 4%, which allowed the company to expand its investment program. The increase in the price of the technology cost of more than 75% provided for in the decision is further burdensome given that the actual technological costs of ENERGO-PRO Grids remain higher than those approved in the price decision. The technological expenditure rate set by the Commission of 9% cannot be achieved in one year, with the company starting to implement its investment programme immediately in full.

The draft decision does not recognise energy efficiency costs imposed by a special law, thus remaining at the expense of electricity distribution companies.

The companies of the ENEGRO-PRO Varna group insist on changing the parameters when making a final decision by the Commission for Energy and Water Regulation, by postponing the planned adjustments in time, in order to ensure a smooth change in prices and a balance between the interests of consumers and energy companies. In the event that the final decision remains unchanged, we believe that real prerequisites are being created for a minimum of twice the price increase so far next year.