Substantial price increase of electricity on the “Day ahead” market

Since the end of 2018 there has been a significant price increase of electricity on the free market and in particular the energy traded on the Bulgarian Energy Exchange in the "Day ahead" module. As a result of this significant increase in the price that directly affects the end-users of energy and the signals received to the stock market operator, on 04.12.2018 was published an official statement of the Bulgarian Energy Exchange setting out that the operator cannot under no circumstances influence prices on the “Day ahead” market as they are the result of binding offers made by the market participants and the increased price is conditioned by the higher demand.

The exchange operator and the electricity traders explain the increased demand with the high prices of the free energy market in other EU countries and in this sense the increased export of cheaper energy from Bulgaria because for the energy intended for export "Public service obligation (PSO)" fee is not due. At the same time, for energy intended for internal consumption the PSO fee is charged which increases the price for local end-users of the free electricity market.

This tendency in the free electricity market and the recordings in the traded quantities of electricity at very high prices since the beginning of 2019 have forced energy traders with concluded Purchase Agreements under different conditions to ask their customers for amendments or for their immediate early termination. Such actions could lead to the protection of the end-user's infringed rights and interests before the relevant regulatory and judicial authorities.