#EnergySupply - #Professionalism, #Reliability, #Growth

10 May 2017
The Successful Companies

#EnergySupply– #Professionalism, #Reliability, #Growth

Interview with Sonia Nikolova - Kadieva, General Manager of Energy Supply Ltd.


Energy Supply is one of the major electricity traders and suppliers  at the  liberalised market. When  did you started and how did you accomplish this?  

We were among the first registered traders of electricity in Bulgaria. We started 10 years ago, upon receiving  our first license and we progressed together with the market. As Highly valuing and maintaining long-term customer  relationships, we succeeded  in  proving  ourselves as a reliable and correct partner. Market liberalization poses ever evolving challenges that our professional team is prepared to answer.

Energy Supply today is an electricity supplier and coordinator of balancing groups in 12 countries. We are constantly enhancing our expertise and this allows to expand our  activities regionally. Today we have subsidiaries and hold licenses to trade electricity in Hungary, Serbia, Macedonia, Greece, Bosnia and Herzegovina, Albania, Croatia. We also deliver electricity daily to Italy, Turkey, Romania, Slovenia and Austria. Since 2012 the company is licensed as coordinator of a standard balancing group in the network of the Bulgarian Transmission System Operator. We are also a coordinator of a combined balancing group for renewable electricity producers. We are managing balancing groups as well  in Hungary, Serbia, Macedonia, Albania, Croatia and Romania.

The electricity trade is a fast developing sector in Bulgaria and Europe. How does Energy Supply participate in this development?

We are among the founders of the Intraday Market in Hungary. As an active market participant, we contribute to market development through flexibility. We offer a full range of flexible energy services. We provide high, medium and low voltage power and energy expertise - hourly forecasting, deviation management and we assume floating risk as part of the negotiated prices and conditions. We buy electricity from different producers. Particular attention is paid to renewable energy capacities - we offer electricity forecasting and purchasing, balancing and  cost optimization. We offer long-term contracts for the purchase and sale of electricity with the possibility of indexation by different economic indicators in order to distribute the risk of market change. We also offer short-term contracts with a highly flexible  products on a daily basis - at weekend  rates and individual hourly profiles or even deliveries based on 15-minute contracts.

We provide additional services within the trade partnership framework.  We evaluate  and manage customer risk by assuming financial responsibility for under-delivery  or over-production. We provide consulting and regulatory assistance in all Southeast European countries where we operate. We have a real-time measurement and monitoring system that includes energy consumption records, financial costs, and other parameters. Our Sales Department is available to customers  on a  24/7  basis  and provides offering and real time delivery of products.

What challenges do you see in front of Energy Supply?

In the present alarming state of the sector, we maintain a moderate pricing policy in order to fulfill our commitments to customers and suppliers. The system operates in a shortage mode with a decrease of about 23% in exports compared to last year. While the Regulator approves price  increase of electricity produced  in a combined way by district heating companies that sell this high-cost electricity  to the Public Provider, one of the baseload  plants with a relatively low production price - Maritza East 2 TPP, allocates only a small part of its capacity to supply energy to the regulated market.  Amplified  by rising carbon requirements, this approach not only damages the state-owned power plant - it results in higher electricity costs, reduced offering  to the Bulgarian energy exchange, additional pressure on consumers, high balancing energy prices, de facto and de jure  bankrupt companies, unfair commercial behavior of traders and consumers. At the end of 2016 - early 2017, the cost of balancing energy in case of negative imbalances reached extraordinary values that did not correspond to the system balancing costs. We submitted to the Regulator a demand to audit the System Operator work regarding  settlement and pricing of the balancing market. Energy Supply was the only company to challenge the settlement and we are looking forward to developments.  

The technological developments, the transition to a decentralized power system, the construction of  "smart homes" participating  not only in consumption but also in the production of electricity, pose new challenges. The prosumer balancing and interaction with the grid operator imply additional services considered by Energy Supply.


Published on 10 May  2017  in the edition   “Successful Companies”,  Publisher: Media Economics Bulgaria Ltd. , ISSN 1314-376X