Rules for price setting

National Energy Regulatory Council is responsible for the determination of the prices according to their approved methodologies.

• Auction participants will be offering the preferred premiums to the market price and the producer with the lowest offer will be selected as an auction winner.
• The maximum possible premium which could be offered at the auction is calculated as a difference between maximum price and a reference price.
• The maximum price is set according to the levelized cost of energy of the economically most efficient technology in the market.
• The reference price is determined taking into account previous 3 year electricity price in the market and a predicted year ahead electricity price.

The prices for the first upcoming auction in September 2019 is already set. Maximum price – 48,93 Eur/MWh and reference price – 45,07 Eur/MWh. According to these set prices the maximum premium at the upcoming auction could not exceed 3,86 Eur/MWh.

• full amount of premium won in the auction will be paid if the sum of the day-ahead electricity market price and the premium tariff is lower or equal to the set maximum price;
• part of the premium won in the auction, will be paid if the sum of the day-ahead electricity market price and the premium tariff will be higher than the set maximum price. That part of the premium will be calculated as a difference between the set maximum price and day-ahead electricity market price;
• the premium tariff will not be paid if day-ahead electricity market price will be equal or higher than the set maximum price;
• there will be no payments for electricity produced in the periods of negative hours (more than 6-hours

The payment characteristics can be seen in the provided graph below: