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Upcoming amendments to the Energy Act

The draft for the amendment of the Energy Act, submitted on 11 November 2020, proposes texts that continue the ongoing reform in the energy sector to introduce full liberalization of the wholesale market and integration of the national market into the common European market. The proposed changes are in two directions.

First of all, the draft provides for the elimination of transactions for the purchase of cold reserve to ensure the security of the electricity system by synchronizing the provisions with Regulation 2017/1485 of the European Commission. According to the Regulation, each transmission system operator manages its control area with sufficient reserves to increase and decrease the active capacity so that it can deal with possible imbalances that may occur in emergency situations or in the mismatch between supply and demand. The draft proposes an obligation for the operator to provide the necessary reserves by concluding contracts for additional services on a market basis after a tender. The changes aim to increase liquidity and liberalize the free electricity market through the ability of all producers to participate in a competitive procedure.

Secondly, the proposed changes intend for the producers of electricity from combined heat and power plants, with the exception of small installations up to 500 kW, to offer their electricity at freely negotiated prices in order to achieve a stable and predictable market.

The news above is for information purposes only. It is not a (binding) legal advice. For a thorough understanding of the subjects covered and prior acting on any issue discussed we kindly recommend Readers consult Ilieva, Voutcheva & Co. Law Firm attorneys at law.