The regulator will upgrade its capacity to develop transparent and fair tariffs in the gas sector to ensure affordable and fair prices
On 22 January 2024, the Energy and Water Regulatory Commission held an inaugural meeting on the project "Creation and implementation of regulatory mechanisms for the natural gas market in Bulgaria". It is funded by the European Commission under Regulation (EU) 2021/240 establishing a Technical Support Instrument ("TSI Regulation"). The main objective is to increase the regulator’s analytical and technical capacity in developing new methodologies, rules, guidelines and models for the natural gas market in Bulgaria. From a regulatory point of view, the project contributes to aligning the national gas market with the EU legal framework.
At the kick-off meeting, EWRC was represented by the Chairman Assoc. Prof. Ivan Ivanov, EWRC members Alexandar Yordanov, Blagoy Golubarev and Penka Trendafilova, as well as by the project working group including experts from the Natural Gas Division, the Legal Division and the General Administration Division. Mr. Luca Di Donatantonio participated on behalf of the EC Directorate General for Structural Reforms Support (DG REFORM). The team of the selected project contractor - Trinomics consulting company and its partner the Black Sea Energy Research Centre - also took part in the meeting.
EWRC representatives stressed the need to update the regulatory framework in several directions - the Methodology for determining prices for natural gas access and transmission, the Guidelines for determining prices for access and storage of natural gas, the assessment of investments and costs of gas distribution companies. It is also essential for the Regulator to align with the European rules determining the categories of information constituting a trade secret as well as its use, storage and publication.
During the project it is planned to develop proposals for amending the methodology for determining prices for natural gas access and transmission through gas transmission networks, to introduce a methodology for determining the reference price of the gas transmission operator and to prepare a simplified tariff model in accordance with Regulation (EU) 2017 /460 of the Commission of 16 March 2017 establishing a network code for harmonized transmission tariff structures for gas (Regulation (EU) 2017/460). This will ensure transparency and predictability for market participants.
The project team will develop proposals to amend the Guidelines for approving tariff for access and storage in an underground gas storage facility, incorporating European good practices. This will facilitate the users’ access of to the storage facility.
The project also envisages preparing an Evaluation model for gas distribution network operators' investments and expenses considering their application in price regulation. It will include methodology and criteria for reviewing and evaluating the investments of the gas distribution companies, as well as developing an algorithm for calculating a coefficient to improve the efficiency of price regulation.
Regarding the rules for determining the categories of information qualifying as trade secret, as well as its usage, storage and publication, an analysis of the current rules will be carried out. They will be updated in view of good regulatory practices from other EU Member States.
The project work plan, including its stages, tasks and the methodology proposed by the contractor for carrying out the activities, as well as monitoring indicators were also discussed at the meeting. Consultancy assistance will also include seminars, consultations, discussions and other activities in accordance with the main project thematic guidelines. The project completion deadline is June 2025.
