London, 17 May (Argus) — Bulgarian energy minister Assen Vassilev has proposed introducing a new power pricing model from 1 July that would scrap export fees and help boost power exports.
The main goal of the new model is for price formation to be done based on market principles, without any distortions, the energy ministry said. It will “remove any additions and supplements to the price of electricity”, the ministry added.
"This actually bases price formation on a market principle, without affecting the end price for the user, but will spur the export of Bulgarian electricity to outside markets," Vassilev said.
No further details on the exact form that the model will take have been provided, and it remains doubtful whether Vassilev will still be in office by July. He is serving in the interim government which formed after the previous government resigned in February. Elections were held on 12 May, but with no clear winner. A new government has yet to be formed and the interim cabinet remains in office.
Bulgarian export fees total around €17.50/MWh and are made up of a number of separate levies, including those to support green energy, combined heat and power plants and to help state-owned utility NEK cover the cost of its long-term power purchase agreements with lignite-fired power plants.
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