A Comparison of the Prices for Electricity Network Services in the Regulated and Free Market

Abstract

Sharing the costs for balancing the electricity system is an important step towards full liberalization of the market, in line with the other countries in the European Union, where all clients pay the costs for balancing energy system. It can’t be denied the indisputable progress of the liberalization process of the Bulgarian electricity market. The topic of "liberalization" is no longer unknown to stakeholders in the energy sector, from both the supply and in demand stand points. In the article the key problems of the creation of a free energy market for a streamlining of production costs, improving the energy efficiency and introducing competition in the sector in Bulgaria are generalized. Thus, the article is considered aspects of switching from scheme of "Single buyer" to scheme of "Bilateral agreements”. Also, the comparison between the prices of the network services in the regulated and free electricity market is conducted. As a result of conducted research there was concluded that Bulgarian energy sector needs changes.

Keywords

• electrical efficiency prices
• balancing the electricity system
• price "obligations to society"
• liberalization