The Energy and Water Regulatory Commission held public discussions on draft rules for amending and supplementing the Electricity Trading Rules and the Power Exchange Operational Rules. In accordance with the requirements for publicity and transparency, the draft rules and the reports of the working group were published in advance on the website of the regulator and on the Portal for public consultations.
The amendments to the Electricity Trading Rules introduce a number of new moments in the functioning of the balancing market in Bulgaria. The current regulatory framework regarding the supply of balancing services is brought into line with the acts of the European Union for establishing guidelines for electricity balancing and for establishing guidelines for the operation of the electricity transmission system, as well as with amendments to national legislation.
With amendments to the provisions of the Methodology for determining prices of balancing energy, a single price is introduced for excess and shortage (imbalance) on the balancing market.
A 15-minute settlement interval is also introduced, thereby enabling market participants to rebalance as close to real-time as possible, according to the market closing hours of balancing services.
With the mentioned changes in the Electricity Trading Rules, a fairer distribution of costs for imbalances between commercial participants in the electricity market is achieved. This will lead to the achievement of the objective of energy supplies at minimum costs, which is a priority in the Energy Act and contributes to the fulfillment of the EU main objective in electricity, namely - the creation of a fully functioning and interconnected internal energy market, contributing to the security of energy supplies, increasing competitiveness and guaranteeing the possibility for all consumers to buy energy at affordable prices. The changes also contribute to unifying balancing markets in the EU and creating more opportunities to exchange balancing services. They create conditions for increasing the operational security of the electricity system in the country and facilitate the operation of the electricity exchange market in the "Intraday" market segment. The introduction of a 15-minute settlement period will encourage the development of a number of commercial products with equal delivery times.
At the second public discussion, the Commission debated a draft of the Rules for amending and supplementing the Power Exchange Operational Rules, prepared based on proposals submitted by the IBEX.
The reasons for the amendment of the Power Exchange Operational Rules are the dynamically changing conditions of the electricity market, the growth of energy prices and the need for effective financial risk management. The changes are also necessary with a view to introducing the requirements of Regulation 2019/943, as well as due to specific requirements for invoicing the transactions regulated in the tax legislation.
The changes in the Power Exchange Operational Rules contribute to the more efficient operation of the exchange operator, smaller fluctuations in electricity prices and more competition between producers/traders. The expectations are that the larger potential market for sales/purchases will increase the reliability of the Bulgarian electricity market and be in the interest of all commercial participants, including end customers.
The proposed amendments create the possibility of trading 15-minute products on the "Intraday" market segment and define the concept of "fifteen-minute product" in order to apply the requirement of Art. 8, par. 4 of Regulation EU) 2019/943, according to which the imbalance settlement period is 15 minutes in all scheduling zones. The changes in the Power Exchange Operational Rules also create an opportunity for IBEX to more effectively manage financial risk, given the dynamics of the electricity market and the observed growth in energy prices.
Through the amendment of Art. 13 and other related provisions of the Power Exchange Operational Rules, self-invoicing is introduced by IBEX, because for the purposes of value added tax, self-invoicing should be carried out through a separate document (agreement) signed by the parties. In this regard, the changes in the Power Exchange Operational Rules create a legal basis for concluding such an agreement between IBEX and trading participants, which is an element of the registration of a trading participant in the "Day Ahead" and "Intraday" market segments.
In accordance with the regulations, all interested parties can submit written opinions on both projects within 14 days. The decisions of the EWRC to accept the changes in the Electricity Trading Rules and the Power Exchange Operational Rules will be taken at a closed meeting on 30/08/2022, after which the two normative acts will be sent for promulgation in the State Gazette.