Balancing energy prices as a result of the new Methodology for determining balancing energy prices

In relation to the crisis prices for shortages and surpluses on the balancing market, we inform you that the BPVA is in intensive talks with the institutions and has submitted a written Statement, in which we once again point out the inconsistency of the Methodology for determining the prices of balancing electricity, adopted by the EWRC, with Article 44, paragraph 2 of Regulation (EU) 2017/2195 on establishing a guideline on electricity balancing. It is this contradiction of the Methodology with the European Regulation that is the reason for the non-market and excessively high shortage and surplus prices on the balancing market for the month of May. We would like to draw attention to the fact that the BPVA was the first and most active in insisting on the preservation in the Energy Act of the powers of the EWRC to intervene in determining the marginal prices for balancing services. If the position of BPVA had been adopted, we would now have a legal instrument through which the Regulator, with its powers, could protect all market participants.

On March 19, 2024, amendments to the Energy Act were promulgated in the State Gazette as part of the Draft Law on Amendments and Supplements to the Law on Safe Use of Nuclear Energy. At the meeting of the Energy Commission held on March 6, 2024, BPVA Chairperson Ms. Meglena Rusenova stated that the removal of the authority of the Regulator to intervene in determining marginal prices for balancing services puts at risk the ability to achieve the most competitive balancing costs for producers and may create risks for additional higher shortage and surplus costs in the balancing market. The full text of the the speech of the BPVA Chairman, taken from the transcript of the meeting, can be found on the following LINK. A video archive of the Energy Committee meeting can be found at the following LINK, following the steps below (Bulgarian language only).
 

Оn April 16 2024, BPVA submitted a Statement to the Chairman and the Members of the EWRC in relation to the proposed Draft Methodology for determining the balancing electricity prices, with which you are already familiar. The text of the Statement can be found at the following LINK.

We hereby assure you that the BPVA remains committed to the adoption of our proposals to amend the Methodology for determining the prices of balancing electricity, in the part where extreme prices are formed for shortages and surpluses on the balancing market.