EWRC launched a European project to optimize the regulatory mechanisms for the natural gas market in Bulgaria
The regulator will upgrade its capacity to develop transparent and fair tariffs in the gas sector to ensure affordable and fair prices
On January 22, the Commission for Energy and Water Regulation (EWRC) held an introductory meeting on the project "Creation and implementation of regulatory mechanisms for the natural gas market in Bulgaria", the regulator announced. The project is funded by the European Commission under Regulation (EU) 2021/240 establishing a Technical Support Instrument ("ITP Regulation"). The main goal is to increase the analytical and technical capacity of the regulator in the development of new methodologies, rules, guidelines and models for the natural gas market in Bulgaria. From a regulatory point of view, the project contributes to aligning the national gas market with the EU legal framework.
At the opening meeting, EWRC was represented by the Chairman of the Commission Assoc. Ivan Ivanov, the members of the regulator Alexander Yordanov, Blagoi Golubarev and Penka Trendafilova, as well as by the working group on the project with the participation of experts from the Directorates "Natural Gas", "Pravna" and " General Administration'. Mr. Luca Di Donatantonio participated on behalf of the General Directorate for Support of Structural Reforms of the EC. The team of the selected contractor for the project - the consulting company "Trinomics" and its partner from the Black Sea Research Energy Center - also took part in the meeting.
EWRC representatives emphasized the need to update the regulatory framework of the regulator in several directions - the Methodology for determining prices for access and transmission, the Guidelines for determining prices for access and storage of natural gas, the assessment of investments and costs of gas distribution companies. Alignment with the European rules for determining the categories of information constituting a commercial secret, as well as its use, storage and publication, is also essential for the Commission.
It is planned to develop proposals for amending the methodology for determining prices for access and transmission of natural gas through gas transmission networks, introducing a methodology for determining the reference price of the gas transmission operator and preparing a simplified tariff model in accordance with Regulation (EU) 2017/ 460 of the Commission of 16 March 2017 establishing a network code for harmonized tariff structures for gas transmission (Regulation (EU) 2017/460). This will ensure transparency and predictability for market participants.
The project team will develop proposals for amending the Guidelines for approval of the tariff for access and storage in underground gas storage, incorporating good European practices. This will make it easier for users to access the repository.
The activities of the project also envisage the preparation of a Model for the assessment of investments and costs of operators of gas distribution networks with a view to their application in price regulation. It will include methodology and criteria for reviewing and evaluating the investments of gas distribution companies, as well as developing an algorithm for calculating a coefficient to improve the efficiency of price regulation
Regarding the rules for determining the categories of information constituting a trade secret, its use, storage and publication, an analysis of the current rules will be carried out. They will be updated in view of good practices of regulators in other EU Member States.
The meeting discussed the work schedule of the project, including its stages, tasks and the methodology proposed by the contractor for carrying out the planned activities, as well as monitoring indicators. Consulting assistance in connection with the implementation of the main thematic guidelines provides for the holding of seminars, consultations, discussions and other activities. The deadline for the completion of the project is June 2025.