Financial and business news from Bulgaria

What does the electricity bill include if we leave the regulated market?

For several months, there has been talk in the media that all economic subscribers must switch to the free market of electricity. Many experts have warned publicly that if they do not carry it out by June 30, they will have to pay higher electricity bills.
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It is not entirely clear to society how invoices form when we leave the regulated market.

“The main part of the invoiced amount is the electricity consumed. Included are the costs for transmission and access to electricity and distribution networks”, explained Pavlin Pavlov from the electricity retailer “Grand Energy Distribution”.

The electricity trade specialist clarified that the costs of transmission and access are due to the ERP and specified that they are legally determined.



“When objects have standardized load profiles, the so-called The network components are paid to the electricity trader, and he in turn reinvoices them to the ERPs.

For customers with larger sites, the so-called profile measurement, the payment of network ingredients directly to the ERP or through a combined contract to the trader is at the customer's request. He chooses one of two options”, explained the specialist in electricity trade from Grand Energy Distribution.

The expert pointed out that the other mandatory costs on the invoice are the so-called “duty to society” and the excise duty.

Both charges are statutory. A “Obligation to Society” fee is paid by society to motivate businesses to make efforts to move towards greener energy production in the long term. The more producers invest in ecology, the better for the whole society.

“Realistically, traders only determine the price of electricity at which they sell and thanks to the opportunity to determine it themselves, conditions are created for greater competition, which lowers the final price offered to the end customers”, Pavlov explained.

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