Market model
The market model at present is based on bilateral contracts and balancing market. The quota principle is still functioning where the State Energy and Water Regulatory Commission determines the electric energy quantities, which the power plants are obliged to ensure for the regulated market and thus the free market is partially restricted.
After introducing the new trading rules effective from June 2009 the following fundamental changes in the electric energy market occurred:
- the weekly schedule notification within the Electricity System of Bulgaria was replaced by schedule notification near to the day of real delivery – day ahead schedule notification which allows more precise forecast of the load and respectively more effective participation on the liberalized market;
- the methodology for shortage price calculation was amended, where the price, which the end industrial consumers have to pay for the non-notified but consumed quantities of electric energy, was reduced;
- the capacity allocation tender rules were amended, where the requirement for participation for quantity, which is maximum 25 % from the quantities traded on the internal market was cancelled; a new requirement was introduced – the participant to be with status “active” on the internal market.
The forthcoming steps in the development of the electric energy market in Bulgaria are:
- introducing of balancing groups of market participants, which enables the internal balancing in the group;
- introducing of equal schedule notification form for delivery within the country and abroad;
- formation of day ahead market and energy exchange.