Energy Market Actors
Electricity market
Structure of power sector
Until mid-2000, the national electric utility, NEK (Natsionalna Elektricheska Kompania), set up in 1992, was responsible for power generation and transmission, as well as for energy trade. It owned all nuclear, hydro and pumped hydro power plants in Bulgaria. After restructuring in 2001, NEK is now only responsible for transmission. NEK is an observer in the regional group of four transmission system operator companies, CENTREL.
In pursuance of the Energy Strategy of the Republic of Bulgaria and the favorable privatization environment created after the adoption of the new Energy Act (amendet 2006) and the relevant secondary legislation, the Privatization Agency has undertaken the privatization of the electricity generation companies.
The seven regional distribution companies have been privatized. The eighth distribution company "Zlatni piasazi - Service" AD is also in private ownership.
The privatization projects of most of District Heating Companies are already finished successful . The work on the sale of District Heating Company Shoumen EAD and District Heating Company Pernik EAD continues.
The production is ensured by seven companies that are being privatized - the Nuclear Power Plant (NPP) Kozloduy and the Thermal Power Plant (TPP) coal/lignite of Maritza East 2 remaining public. Independent producers, concentrated into 9 municipal district heating companies and 17 industrial TPPs make up for 11% of generation in the country. Several hydropower plants are being sold. [PA, Enerdata, Ministry of Economy and Energy]
Privatization
In November 2001, the Bulgarian Government approved a privatization program for seven power distribution companies, twenty heating utilities and seven thermoelectric power plants.
As of 2007 the seven distribution companies have already been privatized and are now being held by foreign operators.
- Stolichno - CEZ
- Sofia Region - CEZ
- Plovdiv - EVN
- Pleven - CEZ
- Varna - E.ON
- Gorna Oryahovitsa - E.ON
- Stara Zagora EVN
Status of deregulation
The regulatory framework governing the sector reforms is currently composed of two main documents: the National Energy Strategy, and the Energy and Energy Efficiency Act.
The regulatory bodies are the Ministry of Energy and Energy Resources, the Energy Efficiency Agency, and the State Energy Regulatory Commission. The latter has now formally taken over responsibility for developing and implementing a tariff and price-setting methodology for electricity, gas and heating, and for approval of tariff proposals submitted by companies in the energy sector.
Opening of the market
January 2002; threshold for Eligible Customers: 100 GWh.
Access to the network
January 2002; regulated Third Party Access model, power purchase agreements between NEK Transmission Company and the generators.
Competition in generation
Mix of tendering and authorisation procedures. New generating capacity of over 25MW will be awarded through tenders.
Unbundling
After restructuring, NEK is only responsible for transmission.
Tariff setting
The Council of Ministers sets binding rules for formation and application of the prices and tariffs for the electric energy. The energy enterprises set the prices and tariffs according to the binding rules and basic principles and submit them for approval to SWERC one month before their publishing along with the pricing documents. [Enerdata, Eurelectric]
Oil and gas market
Oil: Structure and Status of Deregulation
The principal refining company is Neftochim, a joint stock company, 58% of which was privatized to the profit of Lukoil in October 1999. Lukoil and Neftochim had already had a strategic agreement for marketing and transport of refined products. Petrol SA has lost the monopoly in the distribution of oil products, but remains one of the three major distributors of the country. Since 1999, 75% of its capital is privatized.
Gas: Structure and Status of Deregulation
The State Energy Regulatory Commission has now formally taken over responsibility for developing and implementing a tariff and price-setting methodology for electricity, gas and heating, and for approval of tariff proposals submitted by companies in the energy sector.
Bulgargaz is the State company holding the monopoly for transport, transit, and distribution of gas to large consumers. In 2007 the company was split into two entities, to comply with the European Gas Directive. Bulgargaz is in charge of gas imports and sales and Bulgartransgaz for gas transportation and storage.
Topenergy, a joint venture between Bulgargaz and Gazprom, sells Russian gas in Bulgaria and ensures the transit towards Greece and Turkey. Its capital is controlled by Gazprom. [Enerdata, EU Commission, US DoE]
Coal market
The most important units are the three mines of Maritza East, supplying over 95 % of the country's production.The distribution to households is taken care of by Toplivo (website in Bulgarian language).
Prices for coal were liberalized in 2001. [Enerdata]
