Bulgaria With Retro-Active Tariff Reductions

Reduction In Feed-In Tariffs In Bulgaria With New Regulations

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Overview of retro-active tariff reductions

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DECISION № Ц-33 DATED 14 SEPTEMBER 2012

STATE ENERGY AND WATER REGULATORY COMMISSION

On a closed session held on 14 Sept 2012 and upon review Report No Е-ДК-584/14.09.2012 regarding the determination of temporary prices for access to the transmission and distribution networks for the producers of electricity from renewable energy sources using feed-in tariffs, determined the following:

In accordance with art. 21, point 8 in relation to art. 30 (1), point 13 of the Energy Act (“EA”) SEWRC regulated the access to the grid price for the distribution and transmission networks. Following the provision of &1, point 15 of the additional provisions of the EA “access” is the right to use the transmission and distribution networks for transportation of electricity against payment of a price, and in accordance with point 41a user of these networks is an individual or a company, which delivers electricity to the grid or utilizes electricity from it. In this respect we will need to take into consideration that users of the grid are the end customers and the producers of electricity and as such they shall pay access to the grid price.

The access to the transmission and distribution grids price is reflecting the expenses, which are caused in relation to the management of the grid and are related to activities related to the entire management and administration of the electricity system, including expenses related to the dispatching, substations, measurement devices, their reading, as well as all other administrative expenses and general expenses for the respective grid.

&197 of the temporary and additional provisions of the Law for the amendment of the EA (SG 54/ 17 July 2012) the legislation provided for a term of two months for the producers of electricity, which at the time of the entering into force of the amendments to the law didn’t have access t the grid agreements with the operators of the transmission and distributions grids to enter into such agreements. In case of lack of such agreements the operators of the respective grids will need to inform SEWRC, which to determine the terms and conditions for the signing of these agreements.

EA specifically in art. 84 (2) regulate the contents of the access to the grid agreements, which have to be concluded with the operator of the transmission and distribution network, including the rights and obligations of the parties in relation to the dispatching, providing of availability (cold reserve) and additional services. To the extent that the access to the grid agreement covers the dispatching, and on the other hand the expenses associate to it cover, as it was mentioned above, the access to the grid price, the access to the grid price shall be one of the terms under the access to the grid agreement.

By means of Application № Е-13-41-52/13.09.2012 from ESO EAD, Application № Е-13-32-5/13.09.2012 by EVN Bulgaria Electricity Distribution AD, Application № Е-13-33-4/13.09.2012 by “Energo-Pro Grids” AD and Application № Е-13-31-18/13.09.2012 г. of “CEZ Distribution Bulgaria” AD have requested SEWRC to determine prices for the access to the grid to the transmission and distribution grids for the producers of electricity from renewable energy sources using FIT. The grounds of these companies is that given the big number of new producers of energy from renewable energy sources, entered into exploitation until now, as well as given the expectations for new projects to be connected to the grid by the end of 2012, the expenses related to the dispatching are increasing substantially and shall be covered accordingly. The companies did not attach to their applications any concrete data based on which they are making their requests, as they point out that at this moment they could not gather all the necessary information. In this regard they would like during the procedure for the determination of the access to the grid prices for the producers of electricity from renewable energy sources using FIT to be determined temporary prices due to the delay to provide the necessary information and such temporary prices shall be applicable until the determination of the final ones.

By means of the filed applications the operator of the transmission system and the operators of the distribution grids have asked SEWRC to determine prices, including price of access as a condition for the access to the grid agreement, in accordance with the provision of art. 30 (1) point 13 of the EA. In their applications, as it was mentioned above, the companies are making a specific request for the determination of temporary prices for access in case of a delay of the operators of the transmission and the distribution grids in determination of the prices.

By means of a Decision № Ц-17 dated 28 June 2012 of SEWRC for determination of the prices in the electricity sector SEWRC determined prices for the access to the transmission and distribution grids of the operator of the transmission grid and the operators of the distribution grids which are due by the consumers in their capacity of users of the grids. As it was mentioned above, users of the grids under EA are also the producers of electricity, including the producers of electricity from renewable energy sources the FIT and therefore they shall also pay the access to the grid fees. Following the provision of art. 104 of the EA the users of the respective grid are determining their relationships with the transmission / distribution company for the use of the grids and for the transportation of the necessary quantities of electricity provided to the grids. Following the same provision, the terms and conditions, as well as the distribution in the payment of the prices for these services shall be determined with the Rules for the trade with electricity (the “Rules”). In accordance with art. 26 of the Rules the producers of electricity shall pay the access to the grid price is due for the access to the transmission and distribution systems.

On the other hand the legislation requires that the access to the grid agreements shall be signed within two months from the entry into force of the law for the amendments of the EA and therefore within this deadline the above-mentioned companies should have filed with SEWRC application for the determination of the access to the grid prices, as part of the agreements for the access to the grids, in accordance with art. 84 (2) EA. Given the fact that the two-months term for the concluding of the access to the grid agreements expires on 17 September 2012 until which date it is objectively impossible for the administrative proceedings to develop and conclude for the determination of the access to the grid prices for the transmission and the distribution companies leads to the conclusion that the operators of the electricity transmission and distribution grids are already in delay.

Based on the above the request for the determination of temporary prices for the access to the grid of the transmission and distribution electricity networks for the producers of electricity from renewable energy is admissible within the current administrative procedure for the determination of the final ones.

The legislation specifically provides that in case of differences between the final and the temporary prices SEWRC has the right to take decision regarding appropriate compensation measures. Given the above in the determination of these prices SERC shall use facts that are administratively available, including from the provided reports by the companies, data required with respect to their licensing activity, as well as other official data.

With the application filed with the SEWRC has been asked to determine access to the transmission and distributions grids prices for the producers using FIT. This is so, as these producers are requiring big and sudden changes in the production – consumption balance of the electricity system and the necessity of balancing with additionally incurring expenses.

The temporary prices for the access to the electricity transmission and distribution grids have been calculated as a considerable share of the FIT determined by SEWRC considering the quantity and the structure of the FIT and the change of the investment costs.

Given the above and on the grounds of art. 32 (4), art. (1), point 13 and art. 21 (1), point 8 of the EA and in relation to § 197 (2) of the Law for the amendment of the EA

THE STATE ENERGY AND WATER REGULATORY COMISSION

DECIDED

Determines from 18 September 2012 onwards temporary prices for the access to the electricity transmission and distribution grids of ESO EAD, EVN AD, Energo Pro AD and CEZ AD, without VAT, which shall be paid monthly, depending on the date of the connection to the grid, the producers of electricity from renewable energy sources using FIT for the quantities of the sold electricity, as follows:

I. For PV plants with FIT determined by Decision № Ц-018/ 31.03.2010 including:

1. PV plants by 5 kWp – 158,58 BGN/MWh;

2. PV plants exceeding 5 kWp –145,66 BGN/MWh.

II. For PV plants with FIT determined by Decision № Ц-010/ 30.03.2011 including:

1. PV plants by 5 kWp – 152,10 BGN/MWh;

2. PV plants exceeding 5 kWp –139,82 BGN/MWh.

III. For PV plants with FIT determined by Decision № Ц-18/ 20.06.2011 including:

1. Rooftop and façade PV plants with installed capacity up-to 30 kWp, which started production in the period between 01.07.2011 – 31.12.2011 – 121,05 BGN/MWh;

2. Rooftop and façade PV plants with installed capacity up-to 30 kWp, which started production in the period between 01.01.2012-30.06.2012 – 236,04 BGN/MWh;

3. Rooftop and façade PV plants with installed capacity exceeding 30 kWp to 200 kWp, which started production in the period between 01.07.2011 – 31.12.2011 – 119,30 BGN/MWh;

4. Rooftop and façade PV plants with installed capacity exceeding 30 kWp to 200 kWp, which started production in the period between 01.01.2012-30.06.2012 – 232,64 BGN/MWh;

5. Rooftop and façade PV plants with installed capacity exceeding 200 kWp to 1 000 kWp, which started production in the period between 01.07.2011 – 31.12.2011 –116,75 BGN/MWh;

6. Rooftop and façade PV plants with installed capacity exceeding 200 kWp to 1 000 kWp, which started production in the period between 01.01.2012-30.06.2012 – 227,67 BGN/MWh;

7. For PV plants with installed capacity up-to 30 kWp, which started production in the period between 01.07.2011 – 31.12.2011 – 115,30 BGN/MWh;

8. For PV plants with installed capacity up-to 30 kWp, which started production in the period between 01.01.2012-30.06.2012 – 224,84 BGN/MWh;

9. For PV plants with installed capacity exceeding 30 kWp to 200 kWp, which started production in the period between 01.07.2011 – 31.12.2011 – 113,48 BGN/MWh;

10. For PV plants with installed capacity exceeding 30 kWp to 200 kWp, which started production in the period between 01.01.2012-30.06.2012 – 221,29 BGN/MWh;

11. For PV plants with installed capacity exceeding 200 kWp, which started production in the period between 01.07.2011 – 31.12.2011– 97,12 BGN/MWh.

12. For PV plants with installed capacity exceeding 200 kWp, which started production in the period between 01.01.2012-30.06.2012 г. – 189,38 BGN/MWh.

IV. For PV plants with FIT determined by Decision Ц-018/ 28.06.2012 including:

1. Rooftop and façade PV plants with installed capacity up-to 30 kWp – 20,04 BGN/MWh;

2. Rooftop and façade PV plants with installed capacity exceeding 30 kWp to 200 kWp – 18,45 BGN/MWh;

3. Rooftop and façade PV plants with installed capacity exceeding 200 kWp to 1 000 kWp – 15,81 BGN/MWh;

4. For PV plants with installed capacity up-to 30 kWp – 13,43 BGN/MWh;

5. For PV plants with installed capacity exceeding 30 kWp to 200 kWp – 13,04 BGN/MWh;

6. For PV plants with installed capacity exceeding 200 kWp to 10 000 kWp – 11,85 BGN/MWh;

7. For PV plants with installed capacity exceeding 10 000 kWp – 11,81 BGN/MWh.

V. For PV plants with FIT determined by Decision № Ц-28/ 29.08.2012 including:

1. Rooftop and façade PV plants with installed capacity up-to 5 kWp – 3,81 BGN/MWh;

2. Rooftop and façade PV plants with installed capacity exceeding 5 to 30 kWp – 2,90 BGN/MWh;

3. Rooftop and façade PV plants with installed capacity exceeding 30 kWp to 200 kWp – 2,27 BGN/MWh;

4. Rooftop and façade PV plants with installed capacity exceeding 200 kWp to 1 000 kWp – 2,06 BGN/MWh;

5. For PV plants with installed capacity up-to 30 kWp – 1,93 BGN/MWh;

6. For PV plants with installed capacity exceeding 30 kWp to 200 kWp – 1,88 BGN/MWh;

7. For PV plants with installed capacity exceeding 200 kWp to 10 000 kWp – 1,71 BGN/MWh;

8. For PV plants with installed capacity exceeding 10 000 kWp – 1,70 BGN/MWh.

VI. For wind power plants with FIT determined by Decision № Ц-018/31.03.2010 including:

1. Wind power plants working less that 2250 hours with installed capacity of 800 кW and more – 19,06 BGN/MWh;

2. Wind power plants working more than 2250 hours with installed capacity of 800 кW and more – 17,44 BGN/MWh;

3. Wind power plants working with asynchnonic generator with cage rotor – 14,88 BGN/MWh.

VII. For wind power plants with FIT determined by Decision № Ц-010/30.03.2011:

1. Wind power plants working less that 2250 hours – 18,83 BGN/MWh;

2. Wind power plants working more than 2250 hours – 17,30 BGN/MWh;

3. Wind power plants working with asynchnonic generator with cage rotor – 14,86 BGN/MWh.

VIII. For wind power plants with FIT determined by Decision № Ц-18/20.06.2011:

1. Wind power plants working less that 2250 hours – 19,10 BGN/MWh;

2. Wind power plants working more than 2250 hours – 17,31 BGN/MWh;

3. Wind power plants working with asynchnonic generator with cage rotor –13,71 BGN/MWh.

IX. For wind power plants with FIT determined by Decision № Ц-018/28.06.2012:

1. Wind power plants working less that 2250 hours – 14,87 BGN/MWh;

2. Wind power plants working more than 2250 hours – 13,27 BGN/MWh;

3. Wind power plants working with asynchnonic generator with cage rotor –10,44 BGN/MWh.

X. For Hydro power plants with FIT determined by Decision № Ц-018/31.03.2010 […]

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