Amendments to the Energy Act envisage that all non-household electricity consumers, including those whose facilities are connected to the electricity distribution network at low voltage level (numbering around 300 thousand in the country), will purchase electricity for their needs at freely negotiated prices as of October 1, 2020. Until this reform, the free electricity market was mandatory only for larger non-household consumers. The amendments to the Energy Act are in line with the requirements of Directive (EU) 2019/944 of the European Parliament and the European Council of 5 June 2019 on common rules for the internal energy market and amending Directive 2012/27/EU, as well as in fulfillment of the commitment of the Republic of Bulgaria as a member state of the European Union to fully liberalize its electricity market.

The deadline for concluding a contract with an electricity trader lasts until September 30, 2020. In case that the respective consumer has not concluded such a contract, they will be able to continue supplying themselves with electricity from the current provider within a 9-month grace period after that date, now in his capacity as a trader, at market prices, for which purpose the two parties must conclude a standard contract according to a model approved by the Energy and Water Regulatory Commission, with a contract term from 01.10.2020 to 30.06.2021. The approved standard contract model settles the parties’ rights and obligations, the conditions for energy supply and for contract termination.

Within this 9-month grace period – from 01.10.2020 to 30.06.2021, the non-household consumers will have the right to choose a new supplier by concluding a contract with an energy trader for electricity supply at freely negotiated prices. Consumers who do not choose another supplier by 30.06.2021, will be serviced by a supplier of last resort at higher prices from 01.07.2021 onwards.

A central web-based platform for comparing current electricity supply offers, administered by the Energy and Water Regulatory Commission, is expected to be established by 01.01.2021, and all consumers with annual consumption below 100 MWh should have free access to it.

The team of “Popov, Arnaudov & Partners” Law Firm is fully prepared to answer specific inquiries regarding the terms and conditions for the transition to a free market, as well as to assist you in negotiating and concluding a contract. In case you need legal consultation or assistance, you can contact Att. Tsvetelina Stoilova, Senior Associate Partner and Head of Banking and Finance Practice, e-mail: ts.stoilova@popovarnaudov.bg.