1

Plenary Session: Liberalisation of the Energy Market. Protection of Competition

„Where we should be careful…“

Joerg SollfelnerCountry ManagerEVN Bulgaria

04.04.2012Sofia

2

The European Framework is very clear

Full market liberalization

Strict Unbundling

Regulated prices for grid services

Secured supply for vulnerable customers only

No discrimination of market participants

Transparent access to cross border capacities

3

…but the reality is different

0,000

0,050

0,100

0,150

0,200

0,250

0,300

BA

BG

EE

LV

RO

HR

EL

LT

FR FI

TR

PL

CZ SI

UK

HU

SK

PT

NL

MT

EU

-27

LU

EA

ES IE

NO IT AT

SE

BE

CY

DE

DK

Without taxes Other taxes VAT

?

Source: Eurostat

Electricity prices for household consumers in 2010

4

…and recently the gap became even bigger

0

5

10

15

20

25

2007s2 2008s1 2008s2 2009s1 2009s2 2010s1 2010s2

Quartal

EU

R/1

00 k

Wh

DE

EU-27

BG

MK

Sources: EUROSTAT, ERC MK

5

What effects the textbook predicts

Monopoly rents disappear

Market prices for energy that lead to adequate investment into generation

Grid prices that assure sustainable security of supply

6

What effects the customer fears

Increase of energy prices

Competitive disadvantages for the industry

Rising energy poverty

7

And what we should avoid at all

Discussions behind drawn curtains

Unclear definitions in the legal framework

To put the cart before the horse

Distortion of purchase price by market separation

Unequal access to information

Artificially low regulated prices …

or fully liberalized prices without social aid