The Energy System Security Fund (“ESSF”) has published on its webpage a third, revised and bilingual draft of the Premium Agreement (the Bulgarian version of the Contract for Difference or CfD) to be signed with the 4 MW renewable energy producers in the country.
The ESSF Management Board approved the third version of the template CfD that came after a controversial first draft and public discussion held in middle of June.
The latest version reflects some of the most heavily opposed provisions of the CfD, including:
- the restriction for payment in case of legislative changes, which threatens to affect almost all of RES producers, is now amended and states: “If, as a result of changes to the laws, the grounds and/or the mechanism of payment of the Premium and/or an act by a Competent Body, which has entered into force and is subject to preliminary enforcement, shall be amended, or new requirements, restrictions or prohibitions with regard to the payment of the Premium shall be introduced, the Parties shall fulfil their obligations under this Agreement, insofar as this is not in contradiction with the law or the act by the Competent Body” (Article 37 of the CfD).
- a controversial provision in Article 40, requiring ESSF consent in case of the Producer's transfer of rights and/or obligations, has been revised and states: "In the event that the Producer transfers his rights under this Agreement, including the right to receive a Premium through cession agreements and/or pledges them as collateral, such transfers or pledges shall have effect with respect to ESSF as of the date on which ESSF has received a notice from the Producer under the procedure of point 26".
In addition, the Definitions in this version are more precisely worded, and new definitions have been added. Other amendments in the draft are related to the effective date and term of the CfD in Article 25.
The current bilingual draft of the CfD is available at the following link.
For more information on this draft, please contact: Kostadin Sirleshtov and Elena Yotova-Yordanova