Investor Presentaiton
Energy sector (continued)
Establishing a competitive energy market
In line with the Commission's Third Liberalisation Package, Bulgaria takes steps towards the complete liberalisation of the electricity market by the end of
2025 - through elimination of the regulated market segment and introduction of residential consumers to the free market.
Bulgarian Gas Exchange started operating in 2019. In 2020 multilateral trading was launched, incl. short-term and long-term segments and brokerage.
In 2021, the second gas exchange Bulgarian Energy Trading Platform (BETP) received a license for an organised exchange market for trading in natural gas
and gas derivatives for a period of 35 years.
Kozloduy Nuclear Power Plant (NPP) has developed a diversification program for the licensing and implementation of alternative nuclear fuel.
Measures for financial stabilisation of the energy sector
The Security of the Electricity System Fund (the SESF) was set up in 2015 to offset the costs of National Electric Company (NEK) stemming from its
obligations to buy electricity at preferential prices and to pay renewable energy premiums and high-efficiency cogeneration of heat and electricity transferred
to the free market.
Effective from 1 July 2022 the SESF now compensates NEK for the costs of electricity purchased for the regulated market (calculated on the basis of electricity
quantities sold to end suppliers.
By virtue of a National Assembly resolution dated 8 November 2022, the Council of Ministers must adopt a programme for compensation of non-household
end customers of electricity in the period from 1 January 2023 to 31 December 2023.
This compensation shall be in the amount of 100 per cent of the difference between the real average monthly price of the Day-Ahead platform at the Independent
Bulgarian Energy Exchange (IBEX), and on calculations based on a base price of the MWh for the customers interconnected at high, medium and low voltage.
Measures to mitigate the disruptions in the supply of energy resources caused by Russian-Ukrainian conflict
On a pan-European level, an alternative solution for natural gas supply was put into place on January 3rd 2023 when Bulgargaz and BOTAS signed and
agreement granting access to the gas transmission network and the LNG terminals in Turkey, for a period of 13 years.
As of 19 October 2023, the Chiren facility was 96.64% full.
On 3 June 2022 the European Council granted Bulgaria an exception from the embargo on the import of seaborne crude oil from Russia until the end of 2024.
Bulgaria established a diversification procedure for the supply of nuclear fuel to Kozloduy NPP.
Bulgaria has also started construction of a natural gas pipeline in Kostinbrod that will connect Bulgaria and Serbia.
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