Parliament Adopts Second-Reading Amendments to Energy Act Related to Consumer Rights

Sofia, February 26 (BTA) - Parliament Thursday adopted
second-reading amendments to the Energy Act related to consumer
rights.

In accordance with the amendments, the end supplier will inform
the clients through their invoice for the last month of every
six-month period in case the registered electricity or gas
consumption for the period exceeds by over 50 per cent the
consumption registered in the like period of the previous year.

The consumer can request that the operator carry out a
metrological check of the device which measures power
consumption. The check will be carried out by the Bulgarian
Institute of Metrology. The operator has to cover the expenses
if the check finds that the device is out of order; otherwise
the client has to pay for the check.

Should the end supplier decide to discontinue the power supply
for a given client, the operator has to inform the consumer of
this no later than three days in advance.

These draft amendments to the Energy Act were moved by BSP -
Left Bulgaria and were supported by the parliamentary Energy
Committee.

Socialist MP Zhelyo Boychev called for the adoption of his
group's other proposals related to consumer rights, such as the
scrapping of the fee for reconnecting power supply which has
been disconnected due to non-payment of bills, the consumers'
opportunity to make a claim to the quality of the service and be
compensated for the sustained damage, and the
non-discontinuation of power supply for a given client in case
the bill is being disputed until the check has been carried out.
However, these proposals were not supported by Parliament.

Debating on second-reading amendments to the Energy Act moved by
the Council of Ministers, Parliament decided that the ministers
of energy, finance and economy will issue ordinances on the
reduction of the tax related to the expenditures for energy from
renewable energy sources, in conformity with the directions on
state aid for the environment and energy sector in 2014-2020.

BSP - Left Bulgaria voiced disagreement with the provision on
the so-called obligation tax because of the lack of specific
data on the benefit from its reduction for the business and the
distribution of the burden among the remaining consumers. The
big enterprises' savings mean that these will have to be assumed
by others, Boychev said.

Parliament rejected the proposal of independent MP Velizar
Enchev for the creation of a public council to control the
decisions within the Energy Minister's special competence and to
participate in the elaboration of programmes and strategies on
the energy sector's restructuring, on the issue of licenses for
prospecting and exploration of energy resources, as well as on
the privatization of companies such as the Kozloduy Nuclear
Power Plant, the National Electric Company, the Maritza East 2
Thermal Power Plant, and other companies of strategic
significance.

The MPs also approved changes in the arrangements and manner of
election of members of the State Energy and Water Regulatory
Commission, which will be renamed Energy and Water Regulatory
Commission (EWRC). Its chairperson and members will be elected
by the National Assembly (they are now appointed by the Council
of Ministers). The complement of the Commission is increased to
nine members from the present seven. The Commission's decisions
will be adopted by a majority of more than half of its members,
and abstentions are not allowed.

The EWRC will have two panels: Energy and Water Supply and
Sewerage. The first panel will consist of the EWRC chairperson,
the Commission members with experience in the energy sector, and
the members who are a jurist and an economist. The EWRC will
review and decide on matters related to the regulation of prices
in the energy sector and the water supply and sewerage
services, and the complaints received.

The EWRC members will be elected after a public procedure.
Nominations can be put forward by MPs and parliamentary groups.
The chairperson will be elected separately form the other
Commission members. The election has to take place no earlier
than three months and no later than one month prior to the end
of the mandate of the previous members, who will carry out their
functions until the new members take office.

The mandate of the present members of the State Energy and Water
Regulatory Commission will end when the new nine members of the
EWRC take office. They will be elected within one month, the
National Assembly decided.

The Commission members cannot be related persons as defined in
the Conflict of Interest Prevention and Ascertainment Act, and
they cannot take another paid position or carry out another paid
activity, unless it is part of international projects and
programmes related to the activity of the EWRC, scientific and
educational activity, or activity regulated by the Copyright and
Neighboring Rights Act.

The EWRC can hold closed-doors meetings with the participation
of its members and the parties to the corresponding proceeding
when information protected by law is to be announced.

The EWRC will publish on its website the price proposals of the
energy companies and the water supply and sewerage operators,
all the data and protocols from closed- and open-door meetings
and public discussions, and the Commission's decisions,
including the votes of its members and the reasoning of every
member who has voted "against".

According to the second-reading amendments, the Public Financial
Inspection Agency (PFIA) will exercise final control over the
energy companies which carry out activities under regulated,
including preferential, electricity prices. Electricity
producers whose electricity unit's capacity is up to 1 MW, will
not be subject to PFIA's control.

A check can be authorized by the PFIA Director or officials
empowered by him, and the decision is non-appealable. The Energy
Minister can request that PFIA carry out a financial inspection
or a final check in a specific case.

The individuals at the sites being checked by PFIA do not have
the right to deny access to information on the grounds of a
trade secret or bank privacy, as well as to information
classified as a state or business secret, in conformity with the
Protection of Classified Information Act.

The PFIA elaborates a report on the findings of the check
supported by evidence. If a crime is established, the data from
the check are referred to the prosecuting magistracy.