The Bulgarian Government expects the Electricity System Security Fund to receive revenues of around 2.1 billion euros in 2023. Over 1.3 billion euros will come from the sale of greenhouse gas emissions quotas.
The funds will be used to cover the costs of the National Electricity Company (NEK) for previous regulatory periods for its role as a public supplier. Some of the fund’s revenues will be allocated as incentives to district heating plants, cogeneration facilities and facilities with a total installed capacity of 0.5 MW and above. Compensations to companies for high prices of electricity or natural gas are also expected to be paid out of the fund in 2023.
In addition to carbon emissions charges, the fund collects 5% of the monthly revenues from the sale of electricity by producers and importers, as well as fees for network access and transmission of electricity and natural gas and gas storage.
ESSF was established in 2015 to offset the costs public supplier NEK incurred from purchasing electricity from producers at preferential prices.