The Bulgarian Utility Regulator – the Energy and Water Regulatory Commission ("EWRC") held a public consultation on the draft for amendment and supplement of Ordinance No 1 for regulation of the energy prices in EWRC (the "Ordinance"). The proposed amendments come shortly after the recent amendments of the Energy Act.

The public discussion concerning Ordinance No. 1 included representatives of National Electricity Company (NEK), Energy System Operator, EVN, CEZ, the Association for a Free Energy Market, Bulgarian Wind Energy Association and others.

The main topics of debate were related to amendments to clause §4 (Article 10, paragraphs 4 and 5) of the draft, concerning the economic reasoning for "electricity supply" returns and "electricity supply by end supplier" returns will be up 3% and 7% , respectively. Market participants told the EWRC that these estimates are not sufficiently high, and discussions on more appropriate higher percentages ensued.

The Methodology for determination of forecast market price of electricity, as prepared by the Working Group of EWRC, was criticized for lack of clarity and precision.

Responding to criticisms, the EWRC’s Working Group explained that the drafting of this amendment is ongoing, and that many of the issues raised during the public consultation are considered to be well covered by the Ordinance.

EWRC issued a 14 day deadline for submission of written statements, and the participants stated that they will be able to submit feedback by the end of this period.

The closed session for the final adoption of the Ordinance is scheduled for 10:00 am on 15 June 2018.

Current draft for amendment and supplement of the Ordinance is available at: http://www.dker.bg/uploads/_CGCalendar/2018/draft-nrcee-may2018.pdf