EWRC finally adopted the changes in Ordinance No. 1 for the regulation of electricity prices

The Commission for Energy and Water Regulation at its meeting today, May 7, 2024, finally adopted amendments and additions to Ordinance No. 1 for the regulation of electricity prices (NREP), the press center of the energy regulator announced.

With the amendments, the NREP is brought into line with the adopted substantial changes in the ZE from 2023. The change in the legislation opens the next stage of the liberalization of the electricity market, which foresees the full liberalization of the wholesale market of electricity as a necessary stage of the full liberalization of the market retail in its part covering final household customers.

With the latest changes in ZE from 25.04.2024 /amend. and add. DV. No. 39 of May 1, 2024/ the beginning of the transition period of market liberalization was changed and will start from July 1, 2025. After this date, the figure "public supplier of electricity", the determination of estimated monthly production availability is removed of electricity of the producers from which the public supplier shall purchase electricity, as well as the quantity of electricity in accordance with which the public supplier concludes transactions with the final suppliers. Then the obligation of EWRC to approve prices at which: producers, within the limits of their determined availability, sell electric energy to the public supplier will no longer exist; the public supplier sells to final suppliers the purchased electricity for the needs of the regulated market; end suppliers sell electricity to residential end customers.

During the transition period 1.07.2025 - 31.12.2025, final suppliers will be obliged to supply final household customers at regulated prices determined by a program of the Council of Ministers. The regulator will determine a monthly compensation to cover part of the costs of residential end customers for purchased electricity from an end supplier at regulated prices. The regulation clearly regulates the way in which the compensation will be formed.

In the normative act, a completely new chapter is created - to determine the component of the price for the activity "electricity supply from a final supplier", as well as compensations for domestic final customers. In chapter three, which regulates price changes in the main methods of regulation, a new article was created. 40a. New texts in the transitional and final provisions regulate the entry into force of the amended regulation, as well as rules for determining and amending the component under Art. 37d, para. 1 and para. 3 for the regulatory period starting on July 1, 2025.

With the abolition of the obligation to regulate the prices of the public supplier and final suppliers and the introduction of new conditions and order for the formation of the price of the final supplier in connection with the supply of electricity to domestic final customers, as well as the determination of compensations, an opportunity will gradually be provided for full liberalization of the retail market.

Before the adoption of the changes in the regulation, EWRC held a public discussion on 22.02.2024, to which all interested parties were invited. The draft normative act and the report of the working group were published in advance on the website of the regulator and on the Portal for public consultations. Participants in the public discussion supported the draft changes and emphasized that they contribute to the full liberalization of the wholesale market. In accordance with the regulations, within 14 days, all interested parties had the opportunity to submit written opinions on the proposed project. In the final decision of the regulator, a reasoned opinion is given on each of them.

Ordinance No. 1 on the regulation of electricity prices will be sent for promulgation in the State Gazette.