Bulgaria executes the new energy law affecting power production and exports from August 2013


Bulgaria executes the new energy law affecting power production and exports from August 2013
2013-07-22

In June, 2013, Sofia approved a long-expected energy law which allows green and other duties once paid by all retail and wholesale power buyers, as well as by exporters of energy, to be reduced from August, 2013. It means that there will be no green and other levies on exports, also known as renewable and heat and power (CHP) generation. The fee rates will be reduced to EUR 6,20 per MWh from EUR 17,52.  Stranded costs will also fall as a result of the new law.

By all means reduction of fees will make Bulgarian power attractive and competitive again, whereby exports could rise by 500-700 MW. Higher competitive supply from Bulgaria will likely weaken Hungarian prices and redirect flows of Hungarian energy in the region.

 Due to high network fees last year non-transit exports were reduced to only 100 MW mostly composed of long-term contracts with Greek and Turkish importers. The situation consequently caused low demand and cuts in output for Bulgarian producers. For instance Kozloduy Nuclear Power Plant has been working at only 70% of its 2 GW capacity.

Bulgarian energy regulator DKEVR will put in effect new fees from August 1.


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