1 BULGARIAN NATURAL GAS MARKET STRUCTURE STRUCTURE Nikolai Pavlov Commissioner, SEWRC, Bulgaria Commissioner, SEWRC, Bulgaria Gas Regional Initiative – Region South-South East Sofia, Bulgaria January, 2009 STATE ENERGY AND WATER REGULATORY COMMISSION (SEWRC)

2 The State Energy and Water Regulatory Commission (SEWRC) is competent to: Issue, revise, amend, terminate and withdraw licenses; Create secondary legislation; Approve general terms of contracts; STATE ENERGY AND WATER REGULATORY COMMISSION (SEWRC)

3 Control performing of issued licenses; Regulate prices; Set rules and supervise trade and technical rules for networks; Adopt and control implementation of price setting methodology; STATE ENERGY AND WATER REGULATORY COMMISSION (SEWRC)

4 Set rules for access to natural gas transit, transmission and distribution networks; Conduct tenders for regions licensing; Develop and observe the rules on natural gas supply to consumers, including quality of service standards; STATE ENERGY AND WATER REGULATORY COMMISSION (SEWRC)

5 GAS MARKET STRUCTURE Gas supply on the territory of Bulgaria is performed through :   transmission system owned by Bulgartransgaz (1700 km, 3 compressor stations; transit pipelines – 945 km with 6 compressor stations);   gas distribution networks (over 3000 km) – owned by the corresponding gas distribution companies which are licensed for gas distribution and end public retail. STATE ENERGY AND WATER REGULATORY COMMISSION (SEWRC)

6 Transmission of natural gas The supply of natural gas is performed by the public supplier Bulgargaz who has a license for public supply. The supply of natural gas is performed by the public supplier Bulgargaz who has a license for public supply. Bulgartrangaz has licenses for gas transmission, gas transit and gas storage. Bulgartrangaz has licenses for gas transmission, gas transit and gas storage. Gas distribution companies and more than 300 consumers are connected to the gas transmission network of Bulgartransgaz. Gas distribution companies and more than 300 consumers are connected to the gas transmission network of Bulgartransgaz. Transit gas pipelines, owned by Bulgartransgaz, transport natural gas to Greece, Macedonia and Turkey. Transit gas pipelines, owned by Bulgartransgaz, transport natural gas to Greece, Macedonia and Turkey. STATE ENERGY AND WATER REGULATORY COMMISSION (SEWRC)

7 Distribution of natural gas There are 35 licensed gas distribution companies on the territory of Bulgaria which fulfill both functions of gas distribution and public retail. There are 35 licensed gas distribution companies on the territory of Bulgaria which fulfill both functions of gas distribution and public retail. Distribution companies provide natural gas on the territory of 5 regions (Mizia, Dobrudja, Trakia, Dunav and Zapad) and 56 municipalities out of these regions. Distribution companies provide natural gas on the territory of 5 regions (Mizia, Dobrudja, Trakia, Dunav and Zapad) and 56 municipalities out of these regions. Since , all consumers are eligible under the change of the Regulations for providing access to the gas transmission and/or gas distribution networks, accepted by SEWRC. Since , all consumers are eligible under the change of the Regulations for providing access to the gas transmission and/or gas distribution networks, accepted by SEWRC. STATE ENERGY AND WATER REGULATORY COMMISSION (SEWRC)

8

9

10 STATE ENERGY AND WATER REGULATORY COMMISSION (SEWRC)

11 STATE ENERGY AND WATER REGULATORY COMMISSION (SEWRC)

12 STATE ENERGY AND WATER REGULATORY COMMISSION (SEWRC)

13 THANK YOU FOR YOUR ATTENTION! Nikolai Pavlov Commissioner, SEWRC, Bulgaria STATE ENERGY AND WATER REGULATORY COMMISSION (SEWRC)