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Jun 21, 2016

Change in the Energy sector: Abolishment of preferential prices for energy produced by power stations

in English

In today’s edition of the State Gazette a Law for amendment and additions to the Law on Energy has been promulgated, by which the measure to encourage combined production of electricity and heat (i.e. cogeneration) has been removed for a particular group of producers.

The energy regulator shall not determine the preferential prices for purchasing electricity from a cogeneration of producers who meet the following statutory criteria:

  1. to be a factory plant;
  2. according to the audited annual financial reports for any of the three preceding calendar years to have a total annual revenue over 5 million lev.;
  3. their revenue from sale of electricity from cogeneration must exceed 35% of their total annual revenue.

Heating companies which supply thermal energy to household customers and greenhouses for the production of plant agricultural production will continue to receive preferential purchase price for the electricity produced by them. The legal amendment is introduced right before the new pricing period and will lead to a reduction of expenditure for the public provider «National Electric Company” EAD for the purchase of electricity from cogeneration.