NEC Unbundling

The parliament passed amendments to the energy law approving the setup of a fully-owned subsidiary of the National Electricity Company (NEK) specialised in operating the country's power transmission system. The reform follows EU guidelines for separating trade and system operation activities in network industries. The legislative adjustments open doors for direct supplies from NEK to large enterprises with internal power distribution grids that could limit the scope of operations of the electricity distribution companies. Around 60 large consumers are expected to avoid the power retailers in this way. The second ruling partner NMS-II opposed part of the amendments saying that the isolation of the foreign-owned power retailers from large businesses could raise the electricity price for households by some 10%. The changes to the energy law also remove the monthly subscription fee for heating supplies and all charges in the sector will be pegged to the actual consumption. The re-pricing is expected to benefit small consumers, whose monthly subscription fees have a big weight in their annual heating expenses.