Bulgaria won the case in the Court of Justice of the European Union on the conditions for access to the gas transmission networks filed under statement of claim of the European Commission (EC) under the infringement procedure against Bulgaria for violations of provisions of the European legislation. The court's decision was published today, June 5, 2014.
The Ministry of Economy and Energy and Bulgartransgaz EAD consider essential the continuation of the objective and expert interaction with the EC by means of all possible mechanisms and procedures, including the issues of the effective gas market functioning.
The infringement procedure was launched in June, 2009 and entered into a trial phase in 2012. Case C - 198/2012 was filed due to breach of Regulation (EC) No 715/2009. The motive of the European Commission is that the Bulgarian gas transmission operator - Bulgartransgaz EAD does not provide virtual reverse flow ("backhaul") gas transmission services through the transit gas transmission network and according to the Commission that constitutes failure to comply with certain obligations, laid down in Regulation (EC) No 715/2009.
Virtual reverse flow ("backhaul") gas transmission services enable gas traders to conclude contracts with the gas transmission operators for gas transmission in reverse to the physical gas flow direction in the pipeline. That actually means netting by the gas transmission operators of the natural gas quantities contracted for transmission in the two opposite directions. The quantities contracted for transmission in the opposite direction shall be deducted from the quantities contracted for physical transmission in the main flow direction. As a result, only the quantity of gas, constituting the difference between them, shall be physically transported.
Bulgaria’s position in the dispute to the case has been prepared with the coordinated efforts of experts from the Ministry of Foreign Affairs, the Ministry of Economy and Energy and Bulgartransgaz EAD. In its position Bulgaria has consistently argued that the provisions presented in the EC action have not been violated. In the position submitted before the Court of Justice, the Republic of Bulgaria has consistently argued that the provisions of the EC do not provide for an obligation to enable services for virtual transmission in the opposite direction ("backhaul") and Regulation (EC) No 715/2009 does not explicitly state an obligation for the operators of transmission networks to offer such services.
Notwithstanding the absence of such obligation in the Regulation, Bulgartransgaz EAD, being a party that actively contributes to the development of the European gas market, at the time being already implements the expectations of the European Commission regarding the provision of these services to the market. An updated information on the provision of virtual reverse flow at the points of interconnection Negru Voda/Kardam (the border with Romania) and Kula/ Sidirokastro (on the border with Greece) is published on a daily basis on the Internet site of the company. An integrated entry-exit tariff model governing the rules for setting the reverse virtual capacity tariffs has been developed ("backhaul"). Bulgartransgaz EAD is actively working to achieve the necessary agreements with the neighboring transmission system operators - DESFA - Greece and Transgaz, Romania since effective transactions require the provision of virtual reverse transmission services by them as well.