Most recently, the Bulgarian Energy Regulator has taken
significant steps towards the full liberalisation of the natural
gas market: In December 2016, the Bulgarian Energy Regulator
adopted legislative amendments to the Rules for Trading of Natural
Rules") and the Rules for Access to the Gas
Transmission and/or Gas Distribution Networks and the Natural Gas
мрежи и за
Rules"). Moreover, it adopted new Rules for Balancing
of the Natural Gas Market
New Trading Rules
Under the Trading Rules, energy traders are entitled to trade
natural gas at freely negotiated prices with the public supplier,
end suppliers, other gas traders and end customers. Notably, no
specific licence or physical presence is required for trading (both
wholesale and retail) with natural gas on the Bulgarian territory.
The trading regime is therefore considered to be favorable to
foreign traders, at least from a mere legal / regulatory
Establishment of two Virtual Trading Points (VTPs)
Under the newly adopted Balancing Rules, the Bulgarian TSO
(Bulgartransgaz) is required to create and operate a separate
virtual trading point ("VTP") for each
of the two balancing zones of the Bulgarian transmission network
– national and transit. The VTP is a notional point at which
market participants can trade natural gas within the respective
market area (domestic market or transit market) after injection and
before offtake. The VTP is not a physical entry or exit point but
enables natural gas buyers and sellers to purchase and sell natural
gas without the need to book capacity. In order to trade on the
VTPs, gas traders need to register with Bulgartransgaz.
The amendments to the Access Rules made in December 2016
introduced a completely new procedure for access to the
transmission network and capacity booking. An entity requesting
access to the network needs to submit a standard application form
with Bulgartransgaz. Network capacities are tendered via the
Regional Booking Platform ("RBP"),
operated by FGSZ Ltd.
It is worth mentioning that, presently, the applicable Bulgarian
legislation and the currently used template agreements of
Bulgartransgaz do not provide for any financial guarantees required
from gas traders, except for the security obligations in the
procedure for the provision of access to the underground storage
facility "Chiren". However, considering that the actual
free gas trade and free access to the gas network has just started,
we expect that additional collaterals will be introduced in the
legislation and/or in the respective agreements.
Another favourable aspect for foreign traders is that in most of
the cases, when they do not supply natural gas to end-customers,
they will be released from the compulsory registration regime
linked to the VAT and excise duty.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Turkey's Energy Markets Regulatory Authority has determined procedures and principles for investments necessary to deliver natural gas to areas with populations over 20,000 which do not fall within licenses holders' current geographic license scopes.
Turkey's Energy Market Regulatory Authority has introduced principles for natural gas distribution license holders to determine tariffs, identify investments deemed to be network building expenditures, as well as upper limits for these investments.
On December 22, 2016, a dossier on the Draft Code of the Republic of Kazakhstan "On Subsoil and Subsoil Use" ("Draft Code") was submitted for consideration to the Mazhilis of the Parliament of the Republic of Kazakhstan.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).