Source: https://www.correggionet.eu/wordpress/2019/03/21/bulgaria-pmeg-power/
Timestamp: 2019-04-19 08:39:27
Document Index: 394529925

Matched Legal Cases: ['Art. 28', 'Art. 1', 'Art. 2', '§1', '§1', 'Art. 100', 'Art. 100', 'Art. 100', 'Art. 38', 'Art. 52', 'Art. 60', '§1', 'art. 59']

Bulgaria PMEG Power – Energy ComplianceNet
Electricity trading in Bulgaria is subject to licensing.
EU-/EEA-based entities: No local establishment (subsidiary, branch, etc.) on the territory of Bulgaria is required for the licensing of entities registered as commercial companies in EU countries.
Entities based in Switzerland: Since Switzerland is neither EU member nor a party to the EEA Agreement, and the Energy Act does not provide for any special rules, Swiss-based companies will be required to set up a local (or other EU-based) entity through which they can apply for the electricity trading licence.
The license for trade in electricity entitles its holder to trade in electricity on the wholesale and retail market under freely negotiated prices on the territory of Bulgaria without limitations. The license for trade in electricity also entitles its holder to import, export and transit electricity.
A licence is also foreseen for end-customer suppliers. The supply license is issued for a specific territory and its holder is entitled to supply end consumers (household and low voltage industrial) only on this territory under regulated prices. The end-customer supply license holders are strictly regulated by the EWRC.
The present overview only concerns traders (holders of a license for trade in electricity). Reporting obligations applicable to them are highlighted in orange.
Information category / document to be submitted Licensing/registration requirements
Description of reporting requirement Electricity trading in Bulgaria is subject to licensing.
EU-/EEA-based entities: No local establishment (subsidiary, branch, etc.) on the territory of Bulgaria is required for the purposes of the licensing for entities registered as commercial companies in EU countries.
Entities based in Switzerland: Since Switzerland is neither EU member nor a party to the EEA Agreement and the Energy Act does not provide for any special rules, Swiss-based companies will be required to set up a local (or other EU-based) entity through which they can apply for the electricity trading licence.
The present overview concerns only the traders (holders of a license for trade in electricity).
Energy Act, promulgated in State Gazette, issue 107 of 9.12.2003 (Energy Act)
Ordinance No 3 of 21.03.2013 on licensing of the activities in the energy sector, adopted by EWRC, promulgated in State Gazette, issue 33 of 5.04.2013 (Licensing Ordinance)
Recipient (NRA, TSO, power exchange etc.) Energy and Water Regulatory Commission (EWRC)
Submission deadline Prior to commencing the activity
Frequency The licenses under the Energy Act are issued for a term up to 35 years – the usual term for the licenses for trade in electricity is 10 years. Once issued the license is valid for the respective term and no further actions are required. Upon expiration of the term of validity, the licensee is required to ask for extension.
Form of submission (internet page, e-mail, Original copy etc.) N/A
Information to be provided for licensing purposes
Information category / document to be submitted Information to be provided for licensing purposes
Description of reporting requirement 1. Information on corporate status and tax registration pursuant to the domestic legislation.
2. Business plan covering at least 5 years.
3. Data on the financial status and resources.
4. Provision of securities required.
5. Ownership structure information.
6. Data on the experience and personnel, management structure.
7. Data on the commutation and technical resources/software. Approval of the communication resources by ESO.
Recipient (NRA, TSO, power exchange etc.) see “Licensing/registration requirements” above
Form of submission (internet page, e-mail, Original copy etc.) Originals / hard copy / soft copy
Registration requirements for the balancing market
Information category / document to be submitted Registration requirements for the balancing market
Description of reporting requirement In order to become active (after getting a license) on the Bulgarian electricity market a trader needs to:
1. submit a registration form to the Electricity System Operator (ESO) being the Bulgarian ITO pursuant to the requirements of the Third Energy Package
2. conclude with ESO the following contracts – balancing contract, access contract, and transmission contract
3. provide the securities required pursuant to the above contracts
More information and the respective templates may be found on: http://www.eso.bg/?did=114#Documents for Market Participation
Rules on trade in electricity, adopted by EWRC, promulgated in State Gazette, issue 66 of 26.07.2013 (Electricity Trading Rules)
Recipient (NRA, TSO, power exchange etc.) ESO
Form of submission (internet page, e-mail, Original copy etc.) Original hard copy. For further operational purposes there is an online platform for exchange of information.
Registration / reporting requirements imposed by tax regulation
Information category / document to be submitted Registration / reporting requirements imposed by tax regulation
Description of reporting requirement No specific registration and/or reporting requirements apply to traders. Traders operating in Bulgaria are subject to general Bulgarian tax law.
Legal basis N/A
Recipient (NRA, TSO, power exchange etc.)
Form of submission (internet page, e-mail, Original copy etc.)
Application for renewal of licence for additional period
Information category / document to be submitted Application for renewal of licence for additional period
Description of reporting requirement Upon expiration of the term of the active license
Recipient (NRA, TSO, power exchange etc.) EWRC
Submission deadline No later than three months prior to expiration of the term of the active license
Frequency Depends on the term of the license
Any applicable statutory fees (e.g. import fees, license fees, supervisory fees, operational fees)
Information category / document to be submitted Any applicable statutory fees (e.g. import fees, license fees, supervisory fees, operational fees)
Decsription of reporting requirement The following licensing fees payable to EWRC are due:
1. fee for considering the application in the amount of 1000 BGN (approx. 511 EUR)
2. initial fee due for the issued license in the amount of 15 000 BGN (approx. 7669 EUR)
3. annual licensing fee amounting to 2000 BGN (approx. 1022 EUR) plus 0,055 % of the annual income of the trader from power trading in Bulgaria according to its annual financial statement.
Access and transmission fees are payable to ESO in case of export of electricity. In case of domestic trade this fees are payable by the end consumers. The amount of the fees are regulated by EWRC on an annual basis (01 July – 30 June). The fees actual for the period 01 July 2018 – 30 June 2019 are: access fee – BGN 1,39/MWh (VAT excluded) and transmission fee – BGN 8,45/MWh (VAT excluded).
Art. 28, 29 and 104 of the Energy Act
Art. 1 and 3 of the Tariff for charges levied by the EWRC
Art. 2, Par. 1, Item 5 of Ordinance No 1 of 14.03.2017 on the regulation of the prices of the electricity issued by EWRC, promulgated in State Gazette, issue 25 of 24.03.2017
Recipient (NRA, TSO, power exchange etc.) EWRC, ESO
Submission deadline The annual licensing fee shall be paid in two equal installments: by 31 March and 30 November each year.
Frequency Biannually (regarding the annual licensing fee)
Annual (activity) report, including annual turnover, P&L statement, balance sheet, financial statements, annual accounts
Information category / document to be submitted Annual (activity) report, including annual turnover, P&L statement, balance sheet, financial statements, annual accounts
Description of reporting requirement 1. Annual financial statements and auditor’s report;
2. Report on the fulfillment of the business plan;
3. Information on the contracts executed;
There are obligations established under §1д of the Bulgarian Public Offering of Securities Act (POSA) for the persons exercising activities regulated under the Energy Act by the EWRC to disclose certain information pursuant to Chapter 6a of the POSA.
In order to fall among the persons of §1д, POSA a company should meet the following criteria: (i) its activities must be regulated under the Energy Act by EWRC; and (ii) two of the following figures must be met – average number of personnel above 10 persons per year; balance value of the assets as of 31 December – over BGN 700 000; net income per year – above BGN 300 000.
The obligations for disclosure of information under Chapter 6a of the POSA (Art. 100н, Art. 100o, Art. 100o1) are:
(1) Public disclosure of the annual financial statement within 90 days as of the end of the financial year;
(2) In case that a consolidated annual financial statement is prepared then it should be disclosed within 120 days as of the end of the financial year.
(3) The annual financial statement and the consolidated annual financial statement should be publicly available for a period not shorter than 10 years.
(4) Public disclosure of the 6-months financial statement covering the first 6 months of the financial year within 30 days as of the end of the 6-months period.
(5) In case a consolidated annual financial statement is prepared then a 6-months consolidated financial statement for the first 6 months of the financial year is to be disclosed within 60 days as of the end of the 6-months period.
(6) The 6-months financial statement and the 6-months consolidated financial statement should be publicly available for a period not shorter than 10 years.
(7) Disclosure of an announcement for the financial status within 30 days as of the end of the first, third and fourth quarter.
(8) In case a consolidated annual financial statement is prepared then an announcement on a consolidated base for the financial status should be disclosed within 60 days as of the end of the first, third and fourth quarter.
(9) The announcements should be publicly available for a period not shorter than 5 years.
(10) The requirement for disclosure of an announcement would not be applicable in case quarter financial statements are disclosed within 30 days as of the end of the first, third and fourth quarter. In this case the quarter financial statements and the consolidated quarter financial statements should be publicly available for a period not shorter than 5 years.
Art. 38, Energy Act
Art. 52 – 56, Art. 60, Licensing Ordinance
§1д, Public Offering of Securities Act (POSA)
Recipient (NRA, TSO, power exchange etc.) EWRC, Financial Supervision Commission (FSC); the public
Submission deadline The terms and conditions for provision of the information and documents under the Energy Act and the Licensing Ordinance are usually determined by the obligations under the license granted. The usual term set for presentation of the above information and documents to the EWRC is March 31 of the next year.
Frequency Annually for the information under the Energy Act and the Licensing Ordinance
Hard copy to the EWRC at: 8-10 Al. Dondukov blvd., Sofia 1000, Bulgaria
Electronic copy to the FSC (at delovodstvo@fsc.bg)
Information category / document to be submitted Company ownership report
Description of reporting requirement During the licensing procedure only.
Information about the concluded contracts, performance of import agreements in a given period
Information category / document to be submitted Information about the concluded contracts, performance of import agreements in a given period (including type of transaction/agreement, import/export volumes, price, counterparties)
Description of reporting requirement 1. Ιnformation on the quantities of electricity traded and the turnover under agreements for trade with electricity;
2. Ιnformation on the fulfillment of the contracts for trade with electricity;
3. (if applicable) Ιnformation on the relations with the customers – quality of services, security of supply;
4. Accounting documentation which may relate to the regulatory obligations of the Regulator;
5. Excerpts from the trade books and data bases of the Licensee and copies of contracts executed;
6. (if applicable) Presentation of annual report on the work with customers;
7. (if applicable) Information on the relations with the customers – quality of services, security of supply.
Frequency Upon request
Business plan for the following period, including any rules for scheduling of assets and liabilities, forecast
Information category / document to be submitted Business plan for the following period, including any rules for scheduling of assets and liabilities, forecast
Description of reporting requirement Business plans are presented and approved usually in 5-yearly periods
Legal basis Energy Act, Licensing Ordinance
Any subsequent business plan shall be submitted by the licensees for approval by the EWRC no later than 3 months before the expiry of the previous business plan.
Frequency Usually every 5 years
Form of submission (internet page, e-mail, Original copy etc.) hard copy / soft copy
Evidence that the financial security is maintained for each year of validity of the licence
Information category / document to be submitted Evidence that the financial security is maintained for each year of validity of the licence
Description of reporting requirement Only upon request of EWRC
Legal basis Energy Act
Information about the insurances / failure to perform guarantees, concluded by the electricity trader in relation to its activities, if any
Information category / document to be submitted Information about the insurances / failure to perform guarantees, concluded by the electricity trader in relation to its activities, if any
Description of reporting requirement Information (any document that proves the execution of the insurances and their validity) on the insurances related to the licensed activity (as determined under the license, usually – property insurance and third party liability insurance)
Legal basis Energy Act / art. 59 and 60 of the Licensing Ordinance
Submission deadline The terms and conditions for provision of such information and documents are usually determined by the obligations under the license granted. The usual term set for presentation of the above information and documents is March 31 of the next year.
Form of submission (internet page, e-mail, Original copy etc.) Hard copy (8-10 Al. Dondukov blvd., Sofia 1000, Bulgaria)
Technical data from contracts and other information subject to the reporting necessary for market operator-MO/TSO to discharge their obligations or upon the request of the NRA
Information category / document to be submitted Technical data from contracts and other information subject to the reporting necessary for market operator-MO/TSO to discharge their obligations or upon the request of the NRA (e.g. data on the amount of electricity purchased for own consumption at an off-take point or for further resale, activities related to the performance of sale contracts, data required for MO to conduct settlement of imbalances etc.)
Description of reporting requirement N/A
Load declarations / statements, statistical (electricity prices) reports
Information category / document to be submitted Load declarations / statements, statistical (electricity prices) reports
Auctions specific information related to assignment of physical transmission rights or commercial transmission rights
Information category / document to be submitted Auctions specific information related to assignment of physical transmission rights or commercial transmission rights
Description of reporting requirement Auctions are held by ESO for allocation of the capacity of the interconnectors to the neighbouring countries. Auction rules and all other operational information are published on the website of ESO.
Legal basis Auction rules
Submission deadline Pursuant to the Auction rules and depending on the trading activities
Frequency Pursuant to the Auction rules and depending on the trading activities
Form of submission (internet page, e-mail, Original copy etc.) Electronic
Information relating to electricity fuel mix/labelling and energy carriers used to produce sold electricity, with an indication of impact on environment; energy efficiency/RES certificates or payment of a substitute fee
Information category / document to be submitted Information relating to electricity fuel mix/labelling and energy carriers used to produce sold electricity, with an indication of impact on environment; energy efficiency/RES certificates or payment of a substitute fee
Any change of corporate data/contact details relating to trading license
Information category / document to be submitted Any change of corporate data/contact details relating to trading license
Description of reporting requirement Written notice in case of change in the name of the company.
Written notice if the managing bodies of the licensee take a decision to dissolve the company by liquidation. The notice is to be submitted before registration of the decision for liquidation with the Commercial Register.
In the event of liquidation of the company the licensee shall submit an application for termination of the license.
Form of submission (internet page, e-mail, Original copy etc.) hard copy
Notification of each electricity supply / cross-border trading agreement above certain duration period
Information category / document to be submitted Notification of each electricity supply / cross-border trading agreement above certain duration period
Description of reporting requirement Please see above under the section “Information about concluded contracts, performance of import agreements in a given period”.
Information necessary to ensure safe and reliable operation of the network (e.g. information regarding the supply contracts and level of supply)
Information category / document to be submitted Information necessary to ensure safe and reliable operation of the network (e.g. information regarding the supply contracts and level of supply)
End consumer prices and volumes
Information category / document to be submitted End consumer prices and volumes
Information about the energy quality characteristics, supply and quality of service
Information category / document to be submitted Information about the energy quality characteristics, supply and quality of service
Description of reporting requirement (if applicable ) Information on the fulfillment of the indexes for quality of the electricity, uninterrupted electricity supply and quality of services
Any other information upon the request of the NRA (supply agreements, transport / storage agreements, etc.)
Information category / document to be submitted REMIT reporting obligations
Description of reporting requirement The implementation of REMIT in Bulgaria does not deviate from the established European rules.
Address: 1000 Sofia, 16 Budapeshta str.
Call Centre: +359 800 40 444
Address: 1618 Sofia, bulevard “Tsar Boris III”, № 201
Tel.: +359 2 9696 802
Fax: +359 2 9626 129
E-mail: eso@eso.bg
Address: 8-10 Al. Dondukov blvd., Sofia 1000, Bulgaria
Tel.: +359 02 9359 628
Fax: +359 02 9888 782
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