Launch of Power Exchange Will Not Lead to 30-40% Price Spike – Watchdog Chair

Business » ENERGY | May 27, 2015, Wednesday // 15:47
Bulgaria: Launch of Power Exchange Will Not Lead to 30-40% Price Spike – Watchdog Chair Ivan Ivanov, Chair of Bulgaria’s Commission for Energy and Water Regulation (KEVR), photo by BGNES

It is unrealistic to suggest that electricity prices will increase by 30-40% after the launch of the power exchange, according to Ivan Ivanov, Chair of Bulgaria’s Commission for Energy and Water Regulation (KEVR).

Ivanov, as cited by private TV station bTV, told journalists Wednesday that although there were people who probably wanted such price spikes, the trading platform would remove any concerns about this.

He said that all activities related to the installation of the trading were supposed to be wrapped up by end-September, adding that any necessary legislative changes would be adopted parallel to that.

Ivanov noted that then there would be a three-month period for carrying out tests so that as of the beginning of 2016 the power exchange could start functioning, according to reports of the Bulgarian Telegraph Agency.

“Over the remaining months by the end of 2015 it is to become clear what segment of electricity will be offered for sale on the free market and whether there will be an option for a reserved regulated market in order to make sure that there is no risk for household consumers in the first few months after the launch of the electricity exchange,” Ivanov added.

The Chair of KEVR argued that Bulgaria had to introduce the power exchange as fast as possible, stressing that the outcome would be positive both for energy companies, which would compete with one another on equal terms, and for Bulgarian consumers.

He was positive that the launch of the power exchange would result in improved quality and price competitiveness.

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Tags: Ivan Ivanov, Commission for Energy and Water Regulation, electricity prices, power exchange

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