Bulgarian Renewable Energy Producers May Sue Watchdog over Tariff Cuts

Renewable energy producers have threatened to sue Bulgaria's energy watchdog due to its intentions to impose a dramatic reduction in preferential tariffs.

The decrease in the preferential tariff for wind farms is by 20-22% and for photovoltaic plants by over 50%, according to reports of the Bulgarian National Radio (BNR).

Meglena Rusinova from the Wind Energy Manufacturers Association described in detail the procedure which the State Commission for Energy and Water Regulation (DKEVR) was allegedly violating and which was expected to cause the court authorities to revoke the new tariffs.

"The tariffs are calculated on the basis of economically substantiated costs – return on capital. The amount of the running costs includes a projected inflation rate for the entire period of mandatory purchase of electricity," Rusinova declared in an interview late on Monday.

Renewable energy producers opposed the proposals of DKEVR and accused it of breaching the administrative and procedural rules in the preparation of the report on the tariffs.

Industry representatives threatened to sue DKEVR over its plans to impose a dramatic decrease in their preferential tariffs.

They insisted that a ruling of the energy watchdog on renewable electricity preferential tariffs did not reach the targets stipulated in the Renewable Energy Sources Act, thereby encouraging the production of electricity from conventional sources instead of providing incentives for green energy producers.