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1-4 2004 , 1
Southeast European Electricity Market
Monitoring Workshop
October 3-5, 2005
Athens Acropol Hotel
Athens, Greece
Balancing Stakeholders
Balancing Stakeholders
Interests
Interests
in Electricity Market Liberalization
in Electricity Market Liberalization
:
:
A Viewpoint of Bulgarian Eligible Customers
A Viewpoint of Bulgarian Eligible Customers
Nikolay MINKOV
member of the Electricity Market Liberalization Working Group to the SEWRC
Sofia, BULGARIA

Electricity Market Liberalization in an Economy of Transition
Liberalization in a complicated environment
Energy Sector Reforms: Assets revaluation and restructuring Unbundling and rearrangements Utilities financial and corporate rehabilitation Ownership control transfers (privatization, BOT, etc.) Legal and regulatory relief - design and harmonization Regulatory authorities - capacity building Grid systems expansion and integration (electricity & gas, water & environment) Massive investments in rehabilitation and new facilities Market liberalization (fuels & emissions, electricity & gas) Market regionalization and European integration
Industrial Sector Reforms: Acquiring post-privatization ownership control Reengineering business processes and cost optimization Market survival, redirections and new positioning Substantial investments in rehabilitation and new facilities Environmental liabilities and imperatives
2 The Market Share / Time Horizon
Electricity market stair over timeline
All customers
All non-residential
customers
3 4
Eligible Customers of Electricity Profiles
Substantial economic projections
Eligible customers = the basic (large-scale) industries: Mining and industrial minerals Ferro- and non-Ferro metallurgy Fertilizers and chemistry Cement industry Pulp and paper industry Food processors and pharmaceuticals Energy and transport
Electricity market opening affected more than 30 out of the top 100 companies
Direct impact over 30% of the generated GDP
Direct price effect over 50% of the Bulgarian export
Toda
y = 1
2 com
pani
es

Electricity Market Navigation
Stakeholders and Balancers
Assumptions (Stakeholders): Stakeholders as per legislation Market but System, Commercial but Grid Code Fair access to system data and market statistics Equally positioned on the market sphere Fair system risk allocation and management Equally distanced from the regulatory body Transparency on Rules of the Game preparation process Rights but obligations and contributions to the market developments Necessity of a critical mass market players and expertise
Assumptions (Balancers): Involvement of all the balancing parties Independence in inference and judgment Dependence of facts and knowledge Quality of services assurance
5

Electricity Market: The Balance- / Stakeholders Systematics
Transmission
Company
Distribution
Companies
Trading
Companies
Generation
Companies
Customers
Eligible
OPINION MAKERS
Branch & Municipal Associations, Consumer Protection NGOs, Media Channels, Academia, etc.
Customers
Others
Electricity
Market
POLICY GOVERNORS
Council of Ministers, Min of Economy & Energy, Competition Commission, SEWRC, etc.
LAW ASSEMBLERS
Energy Commission of
the Bulgarian Parliament
JUDGE
PROCESSORS
Superior Administrative Court, etc.
Wholesale
Company
Supply
Companies
Stake_Holders
Balance_Holders
6 7
Electricity Market: The Balance- / Stakeholders Systematics
Transmission
Company
Distribution
Companies
Trading
Companies
Generation
Companies
Customers
Eligible
OPINION MAKERS
Branch & Municipal Associations, Consumer Protection NGOs, Media Channels, Academia, etc.
Customers
Others
Electricity
Market
POLICY GOVERNORS
Council of Ministers, Min of Economy & Energy, Competition Commission, SEWRC, etc.
LAW ASSEMBLERS
Energy Commission of
the Bulgarian Parliament
JUDGE
PROCESSORS
Superior Administrative Court, etc.
Wholesale
Company
Supply
Companies
Stake_Holders
Balance_Holders
Quality assurance of
bilateral contracts
Balanced market pricing
model improvement
Balancing groups model
development
Spot-market and Electricity
exchange development
Sustainable integration
into the SEE market 8
Electricity Market: The Balance- / Stakeholders Systematics
Transmission
Company
Distribution
Companies
Trading
Companies
Generation
Companies
Customers
Eligible
OPINION MAKERS
Branch & Municipal Associations, Consumer Protection NGOs, Media Channels, Academia, etc.
Customers
Others
Electricity
Market
POLICY GOVERNORS
Council of Ministers, Min of Economy & Energy, Competition Commission, SEWRC, etc.
LAW ASSEMBLERS
Energy Commission of
the Bulgarian Parliament
JUDGE
PROCESSORS
Superior Administrative Court, etc.
Wholesale
Company
Supply
Companies
Stake_Holders
Balance_Holders
Splitting the TSO and
public wholesaler functions
within the National
Electricity Company
Creating trustee over the
TSO critical infrastructure
development and cost
controls 9
Transmission
Company
Distribution
Companies
Trading
Companies
Generation
Companies
Customers
Eligible
OPINION MAKERS
Branch & Municipal Associations, Consumer Protection NGOs, Media Channels, Academia, etc.
Customers
Others
Electricity
Market
POLICY GOVERNORS
Council of Ministers, Min of Economy & Energy, Competition Commission, SEWRC, etc.
LAW ASSEMBLERS
Energy Commission of
the Bulgarian Parliament
JUDGE
PROCESSORS
Superior Administrative Court, etc.
Wholesale
Company
Supply
Companies
Stake_Holders
Balance_Holders
Electricity Market: The Balance- / Stakeholders Systematics
Fair to all stakeholders
GenCos free capacity
allocation
Encouragement of more
active participation into the
liberalized market
By-side contribution to
market rules development
and the business climate
improvements 10
Electricity Market: The Balance- / Stakeholders Systematics
Transmission
Company
Distribution
Companies
Trading
Companies
Generation
Companies
Customers
Eligible
OPINION MAKERS
Branch & Municipal Associations, Consumer Protection NGOs, Media Channels, Academia, etc.
Customers
Others
Electricity
Market
POLICY GOVERNORS
Council of Ministers, Min of Economy & Energy, Competition Commission, SEWRC, etc.
LAW ASSEMBLERS
Energy Commission of
the Bulgarian Parliament
JUDGE
PROCESSORS
Superior Administrative Court, etc.
Wholesale
Company
Supply
Companies
Stake_Holders
Balance_Holders
Sustainable association of
the demand-side interests
Investments into advanced
enterprise energy
management technologies
and practice
Channeling transfer of
market know-how and
experience from elsewhere 11
Electricity Market: The Balance- / Stakeholders Systematics
Transmission
Company
Distribution
Companies
Trading
Companies
Generation
Companies
Customers
Eligible
OPINION MAKERS
Branch & Municipal Associations, Consumer Protection NGOs, Media Channels, Academia, etc.
Customers
Others
Electricity
Market
POLICY GOVERNORS
Council of Ministers, Min of Economy & Energy, Competition Commission, SEWRC, etc.
LAW ASSEMBLERS
Energy Commission of
the Bulgarian Parliament
JUDGE
PROCESSORS
Superior Administrative Court, etc.
Wholesale
Company
Supply
Companies
Stake_Holders
Balance_Holders
Post-privatization
restructuring
Development of MV
market environment
Import and accumulation
of market know-how
Support in development of
critical mass market
experts 12
Electricity Market: The Balance- / Stakeholders Systematics
Transmission
Company
Distribution
Companies
Trading
Companies
Generation
Companies
Customers
Eligible
OPINION MAKERS
Branch & Municipal Associations, Consumer Protection NGOs, Media Channels, Academia, etc.
Customers
Others
Electricity
Market
POLICY GOVERNORS
Council of Ministers, Min of Economy & Energy, Competition Commission, SEWRC, etc.
LAW ASSEMBLERS
Energy Commission of
the Bulgarian Parliament
JUDGE
PROCESSORS
Superior Administrative Court, etc.
Wholesale
Company
Supply
Companies
Stake_Holders
Balance_Holders
Pro-active policy towards
licensing of trading
companies
Independent .OR. Tied
traders?
Eligible customers and tied
traders 13
Electricity Market: The Balance- / Stakeholders Systematics
Transmission
Company
Distribution
Companies
Trading
Companies
Generation
Companies
Customers
Eligible
OPINION MAKERS
Branch &