Three and a half years after taking over the chair position of the State Energy and Water Regulatory Commission, President Angel Semerdzhiev resigned. Without any hesitation his resignation was accepted at the regular meeting of the Council of Ministers last week and interim head was appointed lawyer Anton Rokov.
Withdrawal of Angel Semerdzhiev came as little surprise to experts in the field, especially after a dispute arose between him and Minister Delian Dobrev. After Brussels referred to the Court of Justice of the European Union that Sofia is delaying the implementation of the requirements of the third energy liberalization package of the commong market, Minister Dobrev washed his hands with the regulator. In his words, the regulator for over a year has not managed to adopt ordinances regulating trade in electricity and natural gas, although it held meetings on the issue. Semerdzhiev replied he did not know when this period of one year may have started given that the liberalization package was adopted on 17 July 2012. In truth, however, this quarrel was only the last part of a chain of disputes. Chief regulkator left mainly because of the conflict with the lobby supporters of green energy. Under the urge of Prime Minister Boyko Borisov in the middle of last year the parliamentary majority of GERB made changes in the Law on Renewable Energy, enabling the regulator to adjust tariffs on the move when the producers decide that there are such grounds. And they placed the regulation in the hands of Mr. Semerdzhiev. He, on his turn, cut prices of green energy and raised fees for access to the network of producers.
This ensured the protection of the public interest. Only in this way we will be able to dampen the enthusiasm in the sector caused by excessively high preferential prices and high profits obtained in these projects, said back then Minister Dobrev. But what followed were recent protests of eco energy producers, all kinds of complaints, some of which reached Brussels, as well as pressure from the banks that financed these green projects. And then the Prime Minister felt that he may have rushed the things too much. Just days ago, he changed course and during a meeting with organizations of eco power producers said he welcomed them with both hands after the price of green energy fell twice. This embrace, of course, could not have included Mister Semerdzhiev. His release was welcomed by the Bulgarian Photovoltaic Association as a step in the right direction. We believe – said representatives of the organisation – that the new energy policy of the government associated with reduced administrative procedures and greater transparency should be reflected in the decisions of the regulator. Hopefully, we expect the protests of water power producers to continue.
Energy Minister Delian Dobrev declined to comment to reporters whether he would suggest someone for the chairman position of the regulator. Names, that have been rumoured are quite disturbing. One is the deputy chairman of the parliamentary group of GERB Dimitar Glavchev, who is head of the parliamentary committee overseeing the work of the regulator. Another is Deyan Chervenkondev – the new energy expert of the majority in parliament, who chaired two committees of inquiry – the one for the shale gas and one the one that investigates abuses in the draft project for Belene NPP. In both cases the appointment would be downright political decision. This way, a few months before parliamentary elections the supposedly independent regulator will be very dependent.
The BANKER
