8 May 2023
Ombudsman Diana Kovacheva sent a recommendation to the Chairman of the Energy and Water Regulatory Commission (KEVR), Ass. Prof. Ivan Ivanov, calling for maximum publicity and transparency of the overall energy pricing process.
The reason for this recommendation is the “applications for approval of prices” published by the Regulator, submitted by licensed companies in the “Electricity” and “Heating” sectors, for the price period 1 July 2023 – 30 April 2024, as in practice the final prices of electricity and heat energy in most of these applications are missing. The problem is that these key figures are deleted in the documents on the grounds of commercial and/or industrial secret of the companies.
“I would like to note that these are proposals for final prices, not initial data for their formation that could be assumed as a commercial and/or production secret,” writes Prof. Kovacheva.
She is categorical that, in this way, citizens and other interested parties are unjustifiably deprived of information – contrary to the provision of Article 15, paragraph 2 of the Energy Act, according to which KEVR must publish on its website the proposals of energy companies for approval of prices, together with all input data.
“It is inadmissible for the prices to be missing from the price proposals published by KEVR. In this way, the purpose of the law is not fulfilled,” the Ombudsman emphasizes.
Diana Kovacheva also refers to the right of citizens to receive information, enshrined in the Charter of Fundamental Rights of the European Union (ОJ, С 326/391 of 26 October 2012).
She also draws attention to the fact that the number of companies in the electricity and heat sectors setting their final prices as 'secret' is increasing every year, and stresses that “once allowed, this practice undermines confidence in the regulatory process due to lack of publicity and transparency”.
“Taking into account the manifold aspects of the complex situation in the energy sector, related to the extremely high prices of energy resources on international markets as well as the carbon emission quotas, it is my firm opinion that the entire pricing process in the energy sector should be as public and transparent as possible”, writes Diana Kovacheva. She insists on taking timely actions to publish the proposals of the licensed companies regarding their final prices before the initiation of the procedure for public consultation of the applications in accordance with Article 14 of the Energy Act.
Finally, the Ombudsman emphasizes that the multiple increases in the prices of hot water and district heating from 1 July 2023 to 30 June 2024 requested by the heat transmission companies are unfounded, and that trade in electricity and heat energy must be carried out in a way that also safeguards the interests of consumers, as provided for in Article 2, paragraph 2 of the Energy Act.