20.09.2017

KRIB's open letter against the new tariff model for gas

In connection with the planned introduction of the new Input-Output tariff model, KRIB sent an opinion in support of BFIEK's position to Ivan Ivanov - Chairman of the Commission for Energy and Water Regulation (KEVR), Temenuzka Petkova - Minister of Energy and Emil Karanikolov - Minister of the economy.

In the open letter KRIBB announces its opposition to entry into force of the Entry-Exit Tariff Model and balancing mode from 01/10/2017, in the manner provided by Bulgartransgaz EAD and KEVR - on the one hand, contradicting European requirements and allowing Bulgartransgaz EAD to abuse its monopoly position, and on the other hand exposing the disinterest and incompetence of the energy regulator in exercising control over the natural gas market.

"The carrier did not prepare and present an assessment of the impact on the market of the new tariff model chosen by him, despite the repeated insistence of network users and natural gas customers. Nevertheless, it intends, with the support of KEVR, to proceed with its introduction since October 1, 2017, with no real idea of ​​the effect and consequences", the letter said.

"At the meeting held on 05/09/2017 at the Ministry of Energy with the business, which was invited only hours earlier, Bulgartransgaz EAD presented an analysis of the increase in prices, but this analysis does not take into account the requests and subsequent adjustments of the end customers, which lead to a drastic increase in costs, even though this information was provided to them by the Public Provider. In this way, Bulgartransgaz EAD continues to deceive the public that there will be no price increase, while it guarantees for itself an excess income.

Minister Petkova explains the need for the entry into force of the new tariffs with the requirements of Regulation 715/2009 of the EU, but the way in which Bulgaria plans to introduce it contradicts precisely the requirements of this Regulation that the tariffs be non-discriminatory, cost-oriented and do not hinder cross-border trade in natural gas .

The tariffs proposed by Bulgartransgaz EAD deprive the Bulgarian industry of competitiveness and make it difficult, through a significant price increase, to import natural gas from sources alternative to Russian gas, guaranteeing continued complete dependence of our country on Russian supplies.

A solution to the problem has not yet been proposed by Minister Petkova, but only attempts are being made to divert public attention from the real problems.

In this regard, "We declare our readiness to protect the Bulgarian industry and the business we represent with 177 thousand employees and to move to immediate protest actions, in case the government does not postpone the introduction of the changes until all the problems in the model chosen by Bulgartransgaz EAD are eliminated and at compliance with the terms established in the Methodologies", stated in an open letter of KRIB regarding the new tariffs of Bulgartransgaz EAD.