TPP Maritsa East 2 will draw a new loan of BGN 50 million State-owned TPP Maritsa East 2, the biggest coal power plant in Bulgaria will draw a loan to the amount of BGN 50 million in order to fund modernization of part of its facilities. The purpose is to complete environmental requirements by the EU for emissions of nitrogen oxides. On the 17th of December the company announced an order for a choice of crediting institution. The deadline is set for the 20th of January. From the start of 2016 limits on emissions of nitrogen oxides enter into force according to the EU directive on industrial emissions. Restrictions cover facilities for different fuels, including lignite coals that are used in TPP Maritsa East 2. So far main concern of the plant was to get FGD installations. The loan of BGN 50 million will be used to increase the degree of sweetening for units 1, 2, 3, 4, 7 and 8 and rehabilitation of boilers in all eight blocks of the power plant.
Source: Capital (06.01.2014)

Bulgaria’s energy regulator gives nod to NEK, ESO split-up The Bulgarian energy regulator has given its approval to the split-up of state-owned electricity company NEK and Electricity System Operator (ESO). As a result of the unbundling, NEK will transfer to ESO some BGN 64.3 million in debts, which will bring the grid operator's current liabilities to BGN 102.7 million, the State Energy Regulatory Commission's decision dated December 18 showed. The electricity company will also transfer to its former unit BGN 2.2 billion in assets, including 295 substations and an electricity transmission network of 14,732 kilometres. Furthermore, ESO receives a 35-year electricity transmission licence. The approval takes effect upon its entry in the commercial registry, the energy regulator said. The unbundling of the two companies is required under the EU’s Third Energy Liberalisation Package. After the separation, all contracts will be reviewed and adjusted to EU regulations, if needed. Bulgarian Energy Holding (BEH) - a holding company set up in 2008 which controls Mini Maritza-Iztok, NEK, ESO, Bulgargaz and the country’s sole nuclear power plant Kozloduy - took full control of ESO from NEK in 2013.
Source: Darik Radio (07.01.2014)

CCU builds a hotel in the center of Sofia Central Cooperative union is building a small hotel with stores and underground garages in the center of the capital city. The site is located in immediate proximity to the company’s office at 99 Rakovsky Street. Work on the site has already started and is planned to finish in two years’ time. Most probably CCU funds the project with equity funds, as last year the company got fresh resources to the amount of EUR 13.3 million from the sale of minority stakes in Coca-Cola Hellenic Bottling Company Bulgaria. The plot, where construction is going on is 1.2 acres and encompasses area of four neighboring plots. Hydroengineering is engaged with construction. Hotel activity is among peripheral direction in the cooperative union’s activity. The company manages seven fully renovated hotel complexes. Three of them are located on the Black sea side-in Golden sands, Nessebar and Kiten; two of them are in the mountain and have SPA centers. The union has a complex for balneological therapy in Voneshta voda village, near Veliko Turnovo, as well as a business hotel in Plovdiv. Tour operator company Kooptourist is part of the company’s portfolio, too.
Source: Capital (12.01.2014)

Bulgaria's National Electric Company Entangled in Debt Bulgaria's National Electric Company has run into debt amounting to BGN 2,353 B by the end of 2013, according to the Economy and Energy Minister Dragomir Stoynev. The official "Analysis and state of energy in Bulgaria for 2012-2013" report by Minster Stoynev specifies as the main reason for NEK's difficult financial situation the energy prices which do not fully cover green energy. The company's liability includes Bulgarian and foreign bank loans totaling to BGN 545 M, as well as BGN 805 M payments to energy producers. According to the Ministry of Economy and Energy, the reduced domestic energy consumption, the high transmission charges and the drop in exports are the main causes behind NEK's financial headache. The high prices of green energy are the underlying factor for National Electric Company's current debts, according to Minister Stoynev.
Source: money.bg (21.01.2014)

Bulgaria grid operator, Turkish company to establish joint venture for electricity export Bulgarian National Electricity Company (NEK) and a company proposed by Turkey will establish a joint company to facilitate the electricity export. Bulgarian Minister of Economy and Energy, Dragomir Stoynev, announced the information during the meeting with his Turkish Energy and Natural Resources Minister, Taner Y?ld?z, who is on a visit to Bulgaria, FOCUS News Agency journalist reported. “I would like to express my gratitude to Mr Y?ld?z for accepting our proposal to establish a join company in the Republic of Turkey between Bulgaria’s NEK and a company, which will represent their country. The company will be registered in Turkey so as to facilitate the export of electricity directly from NEK,” the Bulgarian minister remarked. “The current state of NEK is difficult but it is improving. This is one of the ways to improve the financial results of the company within a short deadline,” Stoynev said further.
Source: Agency Focus (27.01.2014)

Bulgarian Power Distributor Fined for Unfair Competition Bulgaria's Commission for Protection of Competition has imposed a BGN 266 000 fine on Energo-Pro Grid AD for the abuse of a dominant market position. The Commission for Protection of Competition (CPC) found that Energo-Pro Grid AD (former E.ON Bulgaria Grid AD) has abused its dominant position and has hindered energy market access by slowing the accession process of renewable energy producers, which may prevent, restrict or distort competition and affect the interests of consumers. Proceedings were initiated at the claim of V2M Ltd. due to the accession procedure of its photovoltaic plant in Bulgaria's Dobrich municipality to the electricity grid and in particular the delay in the procedure and the finalization of the accession contract. According to CPC, the ungrounded delay in accession procedure by Energo-Pro Grid AD has prevented V2M Ltd. from carrying out its business on the renewable energy production market.
Source: Capital (28.01.2014)

Germany seeks BGN 33.8 million from OZK Germany is looking for BGN 33.8 million from bankrupt Lead and Zinc Complex (OZK). The Federal Republic has issued a state guarantee on a loan agreement between the French bank BNP Paribas and the plant. This is clear from the list of creditors of OZK, adopted by the trustee Alexander Georgiev. The biggest creditor of the plant is BNP Paribas - a total BGN 106.5 million. The Swiss branch of the institution has allocated BGN 93.7 million. Further BGN 12.82 million was credit agreement with the French parent bank. First Investment Bank is looking for BGN 28 million. Upon sale of the property of the plant, banks will get their money first, because have secured claims with pledges. According to a report from October 31, 2013 OZK’s assets amount to BGN 166.5 million, but any sale proceeds could be lower. Among other major creditors of the plant are Seychelles' Walldrop (BGN 72 million), state-owned companies Electricity System Operator (BGN 513 thousand) and NEK (BGN 493 thousand). National Revenue Agency has to take nearly BGN 3 million from OZK for unpaid taxes, insurance, fines and taxes. The trustee has accepted the claims of 123 employees of the complex. Curiously, the majority owner and chairman of the supervisory board of OZK Valentin Zahariev has been awarded BGN 11,642 of unpaid wages. His sons are also in the queue - Peter Zachariev has to receive BGN 7,851 and Kiril Zahariev – BGN 6,133. Before OZK was declared insolvent at the end of last year, part of the company's property was sold at public auction. In 2012, zinc production plant was acquired by Harmony 2012, part of the assets were bought by First Investment Bank. In November last year Harmony 2012 acquired another 44 acres of land. At another public auction FIB bought the hut Akatsia, near the lake Kardzhali.
Source: Presa (29.01.2014)

Bukgaria's grid operator seeks 7 banks for its funds Two weeks after the Bulgarian Energy Holding (BEH) announced it seeks five banks to keep its funds at, its subsidiary company - the National Electricity Company (NEK) - also invited seven banks to distribute its deposits at. According to regulations that the interim government adopted in the spring of 2013, a single crediting institution should not hold more than 25% of the net funds of a state-owned company. According to Deputy PM Daniela Bobeva, all companies had met the condition by November. NEK is prepared to pay BGN 66,000 to the seven banks for their services.
Source: Trud (30.01.2014)

Bulgarian Energy Holding has established “Energy Investment Company" Bulgarian Energy Holding (BEH) has established a new joint stock company, an information in the Commercial Register shows, reported publics.bg. The new company is "Energy Investment Company" with a capital of 50,000 BGN and is a wholly owned by BEH. The decision to create a new company is taken by the Board of directors of BEH on November 26 last year and approved by the principal of the holding - Minister of Economy and Energy Dragomir Stoynev on December 12. According to the BEH decision of 22 January, the new company will be managed by a three-member Board of Directors including Momchil Vekilov Vans (Chairman of the Board), Ilia Petrov Ivanov (CEO) and Delcho Grozev Hristosov. Yet the initial decision of 26 November indicates a different management team: Ilia Petrov Ivanov, Severin Stefanov Vartigov and Ina Lazarova Kirilova. This is the third company BEH established within the last six months. The holding has already established "Energy Operator for Measurement and Iinformation Technologies" and "Independent Bulgarian Energy Exchange”.
Source: Capital (05.02.2014)

Bulgaria's BEH says NEK, ESO split-up completed Bulgarian state-owned electricity company NEK and Electricity System Operator (ESO) completed on February 4 the last phase of their split-up, regarding the unbundling of the ownership of the network and the associated assets, the Bulgarian Energy Holding (BEH) said on Wednesday. The unbundling will allow ESO, as the owner of the grid, to start the process of its certification as an independent transmission operator as a further step in the development of a competitive and financially stable energy market, BEH said in a press release. The split-up of the two companies is required under the EU’s Third Energy Liberalisation Package. Bulgarian Energy Holding (BEH) - a state-owned holding company set up in 2008 which controls Mini Maritza-Iztok, NEK, ESO, Bulgargaz and the country’s sole nuclear power plant Kozloduy - took full control of ESO from NEK in 2013.
Source: investor.bg (06.02.2014)

Ekaterina Ivanova Appointed CEO of Bulgaria's National Electric Cof Ekaterina Ivanova is the new Chief Executive of Bulgaria's National Electric Company (NEK), according to Economy and Energy Minister Dragomir Stoynev. A few days ago, the Board of Directors of the Bulgarian Energy Holding (BEH) approved the removal of Yordan Zhelev from the post and appointed Ivanova, longtime member of the State Commission for Energy and Water Regulation (DKEVR), as his successor, according to reports of the BGNES news agency. Commenting on the reshuffle, Stoynev made clear Thursday that Zhelev, who was appointed CEO of NEK in end-November 2013, had received a better-paid job offer abroad which he had accepted. Stoynev claimed that the latest reshuffle at NEK underscored the need to increase the salaries of senior officials at state-owned enterprises so as to match the huge responsibilities which the positions presupposed.
Source: 24 chasa (07.02.2014)

Sofia heating utility owes over half a billion to NEC and BEH: energy minister The issue about Toplofikacia-Sofia (Sofia heating utility) is a very serious issue. We can not accuse the government in inaction on the issue, provided that Toplofikacia-Sofia owes over half a billion lev to the National Electricity Company (NEC) and the Bulgarian Energy Holding (BEH). That is what Bulgarian Minister of Economy and Energy Dragomir Stoinev said at a public council on energy, a reporter of FOCUS News Agency informed. “People pay their bills, but arrears continue accumulating more and more. It is not good,” Minister Stoinev said and added that the Consumer Association said that the problem with the abuses of Toplofikacia-Sofia is becoming more visible.
Source: Agency Focus (10.02.2014)

Standard & Poor’s decreased NEC’s rating Rating agency Standard & Poor’s decreased long-term credit rating of National Electricity Company from BB- to B+. Prospect before the rating is negative. The assessment is put due to shaken confidence in the quality of BEH as a creditor, as well as of the holding’s propensity to continue helping its subsidiary. Thus the agency warns investors that the company has become riskier. In that way if NEC looks for loans future creditors have reasons to demand higher interest. NEC’s loss as of the end of October is to the amount of BGN 96 million. As to October NEC owes more than BGN 800 million for electric power bought from RES plants, as well as other BGN 215 million for long-term contracts with thermal power plants. The rating agency expects that BEH will go on supporting NEC financially. According to S&P’s calculations NEC owes BGN 960 million to BEH, while its intercompany debt is assessed to BGN 100 million.
Source: Capital (21.02.2014)

BDZ turns its back to Hristo Kovachki Holding Bulgarian State Railways (BDZ) showed red light to Hristo Kovachki. Since Friday freight trains stopped transport from the coal mines of the businessman. The reason for the extreme measure is BGN 15 million of obligations to the state carrier, of which over BGN 9 million are overdue. "This is the first step. If it has no result - we will take cases to court and will block the accounts of the energy boss," lawyers threaten. There is no risk for the heating utilities to remain without coal, we do not expect problems with the electricity supply, engineers assured. Sliven district Heat Supply, which is owned by Kovachki, is supplied from his Cherno More mines in Burgas, as coal transported by trucks. TPP Sliven had to receive more than BGN 5 million from the state-owned NEK. “If they pay us we will repay BDZ,” replied the company.
Source: Class (24.02.2014)

Kovachky power plants remained without permits for air pollution Free allowances for greenhouse gases will get 10 out of 11 thermal power plants in the country, because they have fulfilled their investment programs, according to a report of the energy ministry, sent to the European Commission . In early December 2013 Brussels allowed Bulgaria to allocate free allowances of total market value of 945 million euro, Trud daily said. The condition was companies to invest in environment-friendly production and reduce carbon emissions. So the National Plan includes 27 companies, of which one is state-owned - TPP "Maritsa Iztok 2". The plant also has managed to overachieve its investment program and receive quotas. Free emissions will not be received by the enterprises TPP "Brickell", "Maritsa 3" TPP and "Bobov Dol" TPP connected to businessman Hristo Kovachky. Private TPP "Varna" owned by CEZ renounced quotas itself because can not assimilate them, as currently there is implemented a process of units’ ecologization. Power plants of Kovachky currentlyare selling electricity to the National Elecricity Company (NEK) at high prices , which further raises the price mix that of public provider . A few years ago even TPP "Brickell" is expected to cease work due to lack of desulphurization facilities. Currently there is such a facility , but its effectiveness remains unclear. The power plant currently operates on the basis of its permit based on the old European Directive on emissions. Experts say it is impossible TPP "Brickell" to meet the new requirements for ecology hat Europe intends to impose.In "Bobov Dol" TPP the situation is similar as the plant is currently working with one of its units. Every month from now TPP pays fine of 30,000 BGN for excessive air pollution. The TPP management said that unit 3 will work until the end of 2014 regardless of the monthly fines and violations. If we are not profitable , we will stop it, said Vladimir Vladimirov, a member of the company management. He explained that the company has already started construction of desulphurization facilities. After construction of these facilities it is expected to be seen whether they will get the approval of environment and energy. According to the plan last block of TPP "Bobov dol" has to be closed in 2015. Meanwhile it became clear that railways "Freight" stopped the supply of coal to thermal power plants Christo Kovachky. The reason for this measure are 15 million BGN liabilities to the state company, of which over 9 million BGN are overdue, informs Standard daily.
Source: Capital (25.02.2014)

Insolvent Bulgarian fertiliser plant Chimco put up for sale at EUR 15 mln The assets of insolvent Bulgarian fertliser plant Chimco have been put up for sale at a starting price of nearly BGN 29 million. Chimco's land, buildings, production and engineering facilities, equipment and vehicles will be auctioned on March 19. The tender procedure started at the request of Chimco’s trustee after a decision from the Vratsa regional court. Chimco, which halted operations in 2003, used to be Bulgaria's biggest urea producer with an output capacity of 800,000 tonnes annually, accounting for approximately 3.5% of global production. The plant produced ammonia, carbon dioxide, argon and various types of catalysts, as well. It was declared bankrupt in 2004.
Source: Presa (06.03.2014)

Power Distributors in Bulgaria Warned to Pay National Power Co ASAP Power distributors must pay back BGN 318 M to Bulgaria's National Electric Company by Tuesday or face a license termination procedure and referral to the prosecuting authority. Speaking Sunday during a seminar of ruling party the Bulgarian Socialist Party (BSP) in Borovets, Economy and Energy Minister Dragomir Stoynev drew attention to concerns that the Members of the Bulgarian Socialist Party explained they were worried by the abuse of power distributors which failed to keep their contractual obligations. "The matter involves a methodology for offsetting costs for renewable energy which was in effect during the term in office of GERB (Citizens for European Development of Bulgaria (GERB) government in 2012-2013. This methodology was dropped following a decision of a 5-judge panel of the Supreme Administrative Court (VAS) but the abolition was not triggered by problems with the methodology but by procedural breaches. On the basis of this decision of VAS, power distributors started arbitrarily offsetting their expenses by not paying invoices of the National Electric Company (NEK)," he explained, as cited by Darik radio. He said that VAS had not authorized power distributors to offset such expense using payments to NEK, adding that the move created an imbalance in the system. Stoynev underscored that the power distributors had coordinated their activities so as to stop payments to NEK simultaneously. Bulgaria's Energy and Economy Minister noted that the actions of the three power distributors could be interpreted as an attempt to destabilize the energy system, thereby endangering Bulgaria's national security.
Source: Monitor (17.03.2014)

If the three energy distributing companies, the Czech CEZ and Energo-Pro and the Austrian EVN fail to pay their debts to the National Electric Company, and their licenses are revoked, the state might become their owner. That was what Minister of Economy and Energy Dragomir Stoynev said, pointing out that the last term would expire tomorrow for the three companies to pay their debts to the tune of some 320 mln BGN. Stoynev underlined that the energy sphere is part of national security and no compromise is allowed there, so the state is to take actions. Responding to claims of some of the companies that they had already settled their debts, he argued that bills and invoices showed a different picture. He was adamant that anyone who did not obey the law could not count on the support of the government. On Friday, NEK filed a claim with the State Commission for Energy and Water Regulation (DKEVR), stating that the three power distributors owed it a total of 318 mln BGN. DKEVR and the Ministry of Economy and Energy set a deadline of three workdays for the companies to pay the debts.
Source: vesti.bg (18.03.2014)

BIA: Government intervention in the energy market is a bad signal to business Political interference in the business relationship between two or more companies that have equal status under Bulgarian law is unacceptable and harmful to the overall economic environment, particularly in times of crisis. Such pressure is unauthorized state intervention in the market and is a bad signal to the business and potential investors, states a position of the Bulgarian Industrial Association. According to the employers’ organization, such dialogues should be led not through the media but at the negotiating table between companies. The position of BIA is a response to the intentions of the Minister of Economy to revoke the licenses of electricity distribution companies (EDCs) and referral to prosecution if they do not repay the National Energy Company (NEK). The SCEWR also threatened EDCs with the revoke of licenses. According to the business organization, it is unacceptable to treat differently the debtor of NEK, on the one hand, and EDCs, on the other hand, which under pressure are refused to meet their obligations by offsetting accumulated due to the legal requirement for the purchase of renewable energy.
Source: investor.bg (19.03.2014)

Bulgaria energy watchdog opens procedure to revoke licences of EVN, CEZ, Energo-Pro Bulgaria’s State Energy and Water Regulatory Commission (SEWRC) opened procedures for the revoking of the licences for exercising public power distribution issued to EVN Bulgaria Electricity Distribution, CEZ Electro Bulgaria and Energo-Pro Sales, the press office of the energy watchdog said. “The decisions of the SEWRC as an independent regulatory authority are a result of the need to terminate the illegal actions of the three companies and to guarantee the normal functioning of the Bulgarian energy system. After the inspections carried out over claims filed by the National Electricity Company (NEK) against EVN, CEZ and Energo-Pro violations on behalf of the companies have been ascertained.” The measure comes after last week, first the regulator and then Minister of Economy and Energy Dragomir Stoynev, set an ultimatum to the three companies to pay their due debts to NEK. Up to present, the companies owe BGN 347.6 million. According to the SEWRC, the non-payment of the due sums “leads to the factual blocking of the overall activity of NEK and to the impossibility of making payments to the electricity producers. This puts a real risk at the security of the deliveries in the energy system.” The companies have a seven-day deadline to eliminate the violations, as well as a fourteen-day deadline to present written positions. The regulator is to hold a sitting to discuss the procedures on the licence revoking on April 7.
Source: Agency Focus (20.03.2014)

Fitch Ratings Affirms Bulgarian Energy Holding at 'BB+ Fitch Ratings has affirmed the Bulgarian Energy Holding's long-term foreign currency issuer default rating (IDR) and long-term local currency IDR at 'BB+' with a stable outlook. According to a statement of the Agency, BEH's EUR 500 M bond has been affirmed at foreign currency senior unsecured rating 'BB+'. According to Fitch Ratings, the ratings reflect the dominant position of BEH and its 100%-owned subsidiaries (BEH group) in the country's electricity and gas markets, and its strong links with the Bulgarian state (BBB-/Stable), mainly evidenced by state guarantees for about 30% of the group's debt and strong operational and strategic ties. The ratings also incorporate the weakness of the Bulgarian regulatory framework despite some recent improvements in relation to BEH, corporate governance limitations and the group's large capex plan for 2013-2017 that will likely increase its financial leverage. The key rating drivers are BEH's dominant marketing position, its strong links with the state, and the weakness of the regulatory regime. According to Fitch Ratings, the share of state-guaranteed debt decreased in 2013 to 30% from about 50% as all new debt raised in 2013, in particular the EUR 500 M bond, was without state guarantees. The agency reminds that state plans to guarantee a new EUR 80 M loan related to the gas interconnection project between Bulgaria and Greece. The group's liquidity is sufficient following the EUR 500 M five-year bond issue in November 2013, according to the statement. At end-2013 BEH group had cash of BGN 510 M versus short term debt of BGN 161 M, according to Fitch Ratings. According to the agency, BEH has also diversified its cash and cash equivalents with several local and international banks, a development which reduces the concentration risk highlighted by Fitch in the past.
Source: Capital (21.03.2014)

Bulgaria’s nuke plant posts 38 mln euro profit in Q1 Bulgaria's sole nuclear power plant (NPP) Kozloduy generated a profit of BGN 74 million in the first quarter of 2014, up from expected BGN 67 million, Kozloduy’s CEO said on Monday. The NPP’s lost profit estimated at 8.0 million levs as a result of the limits on electricity generation imposed by state-run Electricity System Operator (ESO), Ivan Genov said in an interview for public radio broadcaster BNR without specifying the period in question. Kozloduy’s losses related to the trade on the regular market, where the electricity price is determined by the the State Energy and Water Regulatory Commission (SEWRC) and is less than the cost of production, are compensated from the sale of electricity on the free market. The NPP generates some 60% of its revenue on the free market, where it sells 45% of its total production. Kozloduy closed 2013 at a profit of BGN 40 million, Genov said in the interview. Kozloduy generates 35% of the overall electricity produced in Bulgaria. The Kozloduy NPP remained with two operational reactors of 1,000 megawatts (MW) each after the country closed down four units of 440 MW each to address nuclear safety concerns of the European Union prior to its accession to the bloc. Bulgaria joined the EU in 2007. In April 2012 the government decided to add another 1,000 MW unit to the plant.
Source: investor.bg (25.03.2014)

Bulgaria's NEK mulls setting up export JVs in Serbia, Romania - media Bulgarian state-owned electricity company NEK may set up joint ventures in Serbia and Romania to facilitate its exports. BEH has lent NEK over BGN 900 million to pay energy producers. The company's CEO Yonchev also said that NEK and Electricity System Operator (ESO) are the only companies in the BEH group that closed 2013 in the red, according to preliminary estimates. Mines Maritsa Iztok reported minimum loss for 2013, as expectations are that the profit of the company will be to the amount of BGN 4.5 million.
Source: Standart (25.03.2014)

NPP Kozloduy ready to cut the price of household electricity NPP Kozloduy is ready to sell household electricity at even cheaper prices (which is the cheapest in the country), but instead will ask the watchdog to reduce its quota for the regulated market from 55 to 40 percent of its production, said CEO Ivan Genov. Kozloduy’s losses related to the trade on the regular market, where the electricity price is determined by the State Energy and Water Regulatory Commission (SEWRC) and is less than the cost of production, are compensated from the sale of electricity on the free market. Quota for the regulated market has to be implemented, not to keep it for last and when it appears that it cannot be bought we have to unload the NPP (to reduce capacity), said Genov. He estimated the lost income for the NPP Kozloduy from reducing its capacity to BGN 8 million. The NPP generates some 60% of its revenue on the free market, where it sells 45% of its total production.
Source: Standart (25.03.2014)

NEK gave EDCs to prosecution Electricity supply companies CEZ, Energo-Pro and EVN were heard by the Energy Committee in the National Assembly on the initiated proceedings for the revocation of their licenses. Meeting of the Committee attracted an extremely large media and public interest. The deadline for the supply companies to recover BGN 347 million to the National Electricity Company expired yesterday. The amount caused a dispute between the supply company and NEK. Companies of CEZ, EVN and Energo-Pro claim that NEK owes them a similar amount, because they have bought electricity from renewable energy plants - something which according to the law is the responsibility of NEK. Electricity supply companies said they proceeded with the offsetting of receivables from NEK in order to survive and to preserve financial stability.
Source: money.bg (27.03.2014)

Power Distributor Energo-Pro Also Takes Bulgaria to Court Energo-Pro has become the second power distributor to sue Bulgaria at the World Bank's arbitrary court. The Czech company has announced that it has lodged a claim with the International Center of Settlement of Investment Disputes, which could be launched in case of failed arbitration. Last year, EVN, which provides electricity to the south of Bulgaria, also filed a case at the World Bank's court. Legal action comes Bulgaria's energy watchdog DKEVR announced on March 19 it would suspend all three power distributors' permits over unpaid debts to the state-owned National Electricity Company (NEK). The State Commission for Energy and Water Regulation (what DKEVR stands for) has cited "threats to energy security" as a reason. It claims that debts to be covered by the power distributors are worth BGN 350 M (EUR 175 M). The companies, however, refute allegations of any liabilities to NEK, explaining that NEK actually owes them compensations for uncollected renewable energy taxes. Power distributors now have a 7-day deadline (until Friday) to make payments if they wish to keep their licenses. Economy Minister Dragomir Stoynev announced earlier on Wednesday that NEK has not received anything from the distributors. The three power distributors have not yet come up with official statements on their plans by the end of the week. On Tuesday, EVN said it was planning to sue Bulgaria for EUR 1 B over the threat to "nationalize" its business.
Source: money.bg (27.03.2014)

Bulgargaz gets BGN 120 million loan Energy Minister Dragomir Stoynev signed a BGN 120 million loan to Bulgargaz to support heating company Toplofikacia. The different heating companies have obligations to Bulgargaz but these are not drastic, the minister noted. "In 2009 we had a promise from Gazprom that it would ensure supplies for Bulgaria and the Ukraine. It would be strange for Ukraine to stop deliveries to Europe, after Europe has done so much for Ukraine" the minister noted. According to Stoynev, Bulgaria has a contract for up to 3 million cubic meters from Greece per day. Daily consumption is between 8-9 million cubic meters, thus Bulgaria's stocks would not hold for to long in the case of a supply cut. Bulgaria has signed a supply memorandum with Turkey. The link from Romania was scheduled to be ready in April, but according to experts, it will be delayed to the end of March due to a collapse. The Serbian change of government slows down the development of the Bulgarian – Serbian energy connections, but the old government has signed a contract to supply 1 billion cubic meters from Bulgaria's Shah Deniz 2, the energy minister informed.
Source: Standart (31.03.2014)

CEZ Bulgaria does not proposes electricity price hike CEZ Bulgaria power distribution company does not propose an increase of the price of electricity but rather calls for more balanced allocation of the shares of the different participants in the production-supply chain, which to guarantee the interests of the end-consumers, the press office of the company announced. CEZ calls for transparent, fair and equal determination of the electricity prices. Over the past year the share of CEZ in the end-price has been constantly decreased, from 13% in 2006-2007 to 0.9% now. At the moment CEZ gets BGN 0.90 per each BGN 100 electricity bill with which the company should realise its activities. Only in 2013 the State Energy and Water Regulatory Commission (SEWRC) cut the share of the company with 90%, while at the same time the share of the National Electricity Company (NEK), the Energy System Operator and the producers was increased with 11% to 82.45% of the end-price. CEZ is left with the smallest share, while at the same time it is the most important for the quality of the electricity provided to end-consumers. Such an imbalanced structure of the electricity price contradicts the major principles in the EU, where everyone along the chain is developing in a balanced principle. With the proposal filed at the SEWRC in the end of March CEZ calls for its share to be recovered to a level that allows the company to develop the biggest electricity distribution network in the country.
Source: Standart (04.04.2014)

CEZ proposes to Bulgaria’s NEK agreement on settlement of arguments CEZ Electro Bulgaria AD proposed an agreement on settlement of arguments to the National Electricity Company (NEK) EAD, the press centre of the State Energy and Water Regulatory Commission (SEWRC) announced. NEK EAD confirmed in a letter today that negotiations were being held. The SEWRC decided today to give more time to the three power distribution companies to get acquainted with new evidence, to present their positions and, if they deem it necessary, to file other evidence. The next open sitting of the state watchdog is to be held on April 28. At the sittings the representatives of the three power distribution companies [EVN Bulgaria Electricity Distribution, CEZ Electro Bulgaria and Energo-Pro Sales] presented their stances on the open procedures for the revoking of the licences for exercising public power distribution services.
Source: Agency Focus (07.04.2014)

Bulgaria’s NEK recognises CEZ’s willingness for preparation of agreement on settlement of financial argument National Electricity Company (NEK) recognises the expressed willingness on the part of CEZ Electro Bulgaria AD for the preparation of an agreement on settlement of the financial argument, the press centre of NEK announced. NEK EAD received a letter from CEZ Electro Bulgaria AD in which the company [CEZ] expressed its willingness to start negotiations aiming at settlement of the argument over the sums of money that were kept back and are due to be paid to NEK EAD. NEK EAD recognises the expressed willingness on the part of CEZ Electro Bulgaria AD for voluntary settlement of the existing arguments and the preparation of an agreement which is to arrange for the payment of nearly BGN 38 million from the due sums. NEK EAD states in its position that all the details will be made clear and all the regulations provided in Bulgarian legislation will be complied with in the frames of the negotiations so that an agreement is reached. The argument between the two companies stems from a repeal of the Methods concerning compensating for expenditures on the part of the public power distributor and end-suppliers ensuing from imposed on them debts to the society in the period from July 2012 to July 2013.
Source: Agency Focus (08.04.2014)

CEZ Offers Settlement to Bulgaria's Energy Company Power distributor CEZ has proposed a settlement to the Bulgarian National Electricity Company (NEK), officials from the state-owned utility announced Monday. On Tuesday CEZ sent a letter to NEK saying it was ready to engage in a dialogue over its debts to NEK. If such negotiations occur, NEK is ready to provide "about BGN 38 M [EUR 19 M]" (out of BGN 75 M) of its liabilities to NEK. Negotiations are already taking place, but officials from the company have declined to enter into details. Bulgaria's state watchdog DKEVR decided to give power distributors some more - until April 28 - time so that they could get to know "new evidence" suggesting the amount of debt to NEK. On its Monday session, DKEVR was to say whether it would suspend permits of three power distributors operating in Bulgaria over their failure to pay a total of BGN 350 M to the electricity company, but put off the decision.
Source: Dnevnik (08.04.2014)

Bulgaria to connect 30% of households to gas grid by 2030 - energy min Bulgaria is drafting an energy strategy under which it will connect 30% of households to the gas supply network by 2030, the energy ministry said on Tuesday. Bulgarians’ gas consumption is relatively low compared to that of the other European countries, where over 80% of citizens use gas in their daily activities, deputy energy minister Ivan Ayolov was quoted in a press release. The new energy strategy will aim to shrink the gap by increasing the domestic and industrial consumption of gas in the country. It will focus on strengthening Bulgaria’s role as a transit point for a number of gas links in the region, Ayolov added.
Source: Sega (09.04.2014)

Double charge for transfer of electricity Electricity System Operator (ESO) has demanded double charge for transfer of electricity. This became clear at yesterday's meeting of the parliamentary energy commission, at which were heard the heads of NEK and ESO for the separation of the two companies. Currently the transmission charge is BGN 4.15 per megawatt hour, while ESO wants to return the old rate of BGN 9.70. Last year the transmission fee was reduced twice - in August and December. The purpose of SEWRC was to reduce the price and to restore the export of electricity. The price of electricity does not include only the transfer fee, said the head of ESO Shishman Chushev. Only SEWRC can say what the impact of the transfer fee to the price would be, he added. But experts say the return of the old tariff will raise the price by about BGN 0.5 per kWh with VAT.
Source: Standart (10.04.2014)

EDCs violate procurements Two of the three electricity distribution companies operating in the country have committed a number of breaches of the Public Procurement Act, according to the report of the Agency for State Financial Control (ASFC) for the first quarter of 2014. Energo-Pro and EVN Bulgaria were subject to the checks. It turns out that EVN was found guilty of 69 violations of various articles of the Public Procurement Act. ASFC inspectors examined a total of 12 procurement contracts of EVN totaling BGN 65 million. Five procurement procedures totaling BGN 5.7 million have been not or wrongly held. However, the internal audit found no harm to the public in connection with these violations. Checks of the financial inspectors included five procurements of Energo-Pro for a total of BGN 6.8 million. The unduly performed or not realized are three contracts for a total of BGN 5.5 million.
Source: Standart (11.04.2014)

NEC to be saved with return of debts The European Commission changed its policy on renewable energy, because there is a distortion of market mechanisms. This was announced by Bulgarian Minister of Economy and Energy Dragomir Stoynev. He also gave explanations about concerns that the Bulgarian government introduced a disputed fee of 20% on this kind of energy. According Stoynev, the financial situation of Bulgaria's National Electric Company will be improved once the distribution companies pay for the current used and heating company "Toplofikatsia" repays its BGN 500 million debt. The Minister described as unpredictable the results of the possible economic sanctions against Russia and called upon Europe to have solidarity with countries such as Bulgaria, which only lose out from such restrictions.
Source: Standart (15.04.2014)

Turkey to import electricity from Bulgaria Turkey will import electricity from Bulgaria to cover shortages caused by prolonged drought in the Mediterranean country, Sofia-based media quoted Turkey’s energy minister as saying on Tuesday. Water levels in Turkish dams, especially in the region of eastern and southeastern Anatoliya, have dropped sharply and the country is experiencing power shortages, the state-run news agency BTA quoted Taner Yildiz as saying. To meet domestic demand Turkey will import electricity from Iran and Georgia, as well, BTA added.
Source: investor.bg (22.04.2014)

Debts of Bulgaria's NEK Grew by a Quarter in 2013 Bulgaria's National Electricity Company (NEK) owed 24% more at the end of 2013 than it did the previous year. As of December 2013, its debt reached BGN 3.2 B (EUR 1.6 B). Just in the second half of the previous year, its commercial liabilities increased by BGN 200 M to reach a total of BGN 817.5 M. The loss declared for the same year amounted to BGN 334.2 M, which was 3.5 times as much as in 2012. Data released by NEK comes a few weeks after the Economy Committee at Bulgaria's Parliament demanded that the company provide up-to-date information on its debt. NEK has been involved in a scandal with power distributors operating in Bulgaria over the past months, with both sides claiming the other side owes them hundreds of millions of BGN. Bulgarian government and opposition representatives have recently embroiled themselves in a dispute over the situation at NEK, which some experts suggest is on the brink of bankruptcy. Center-right opposition party GERB has accused the ruling Bulgarian Socialist Party of mismanaging the energy sector and leading it to financial turmoil, whereas the Economy Minister Dragomir Stoynev has cited data showing that the liabilities of NEK have increased the most between January 2011 and end-June 2013. GERB was in power in Bulgaria until February last year.
Source: Dnevnik (23.04.2014)

Bulgaria's Kozloduy NPP Cannot Export Electricity to Turkey - CEO Ivan Genov, CEO of Bulgaria's Kozloduy nuclear power plant, has said that it cannot export electricity to Turkey. In a Sunday interview, he explained that unit 5 of the N-plant was undergoing a planned annual overhaul and only unit 6 was operational. "We have signed contracts on the free market by end-June, the end of the regulatory period, and the quantities which remain are an obligation of the Kozloduy NPP to the public supplier, the National Electric Company (NEK). The only entity to which we can sell electricity at the moment is NEK, which are sales on the regulated market," Genov noted. "We are not entitled to sign direct contracts for electricity exports. We organize tenders through which we sell electricity to traders and the Electricity System Operator provides information about whether it is sold on the domestic market or on foreign markets. This is a requirement of the European Union – to not divide tenders into ones for the domestic market and ones for the foreign markets. We have no option of selling electricity to Turkey directly," Genov emphasized. The CEO of the Kozloduy NPP also provided information about the progress of the project for the extension of the life of units 5 and 6 of the N-plant. "Bulgaria currently has no other option of maintaining its nuclear energy than extending the life of units 5 and 6 of the Kozloduy NPP. It would be absurd to waste the opportunity of securing another 30 years of exploitation of the two N-plant units, which are selling the cheapest electricity in Bulgaria, at a low price. At the current pace of work, we should be ready to receive a license for another 10 years of exploitation of unit 5 by 2017. By 2021, this will also happen for unit 6," Genov made clear. He specified that the Kozloduy NPP had registered a profit of BGN 42 M in 2013 and Q1, 2014 had ended at a profit of BGN 64 M. He said that talks with US Westinghouse on the construction of unit 7 of the Kozloduy NPP were still underway and the contract for the first stage of the project was to be signed by September, provided that things proceeded normally and the financial terms were acceptable. Asked to comment on the heated debate surrounding the South Stream gas pipeline project, Genov was adamant that the conduit had to be built.
Source: econ.bg (28.04.2014)

Bulgaria's DKEVR Puts Off Decision on Power Distributors The Bulgarian energy watchdog DKEVR postponed on Monday its decision whether to suspend permits of grid operators in the country. A new session on that matter is due to be held on May 12, as Expert.bg reported. Bulgaria's energy regulation body cited as a reason for its move the need of time for power distributors CEZ, EVN and Energo-PRO to "specify their positions". A dispute emerged earlier in 2014 between the National Electricity Company (NEK) and the distributors over hundreds of millions of BGN, which each side claims it should be paid back by the other one. According to NEK, operators owe BGN 348 M (EUR 174 M) in total, with BGN 216.5 M of them ascribed to Austria's EVN, 67.4 M to the Czech Republic's Energo PRO, and 67.3 M - to Czech-based CEZ. The distributors, for their part, say they are to be transferred BGN 415 M (EUR 207.5 M) for green energy distribution and argue they have actually "kept back" that the sum allegedly owed to NEK as it partially covers these liabilities. As a result, DKEVR has announced it mulls scrapping licenses of power distributors. Bulgaria's Economy Ministry meddled into the dispute earlier in April, as its head Dragomir Stoynev declared that state could step into the management of power distributors, but added this would not be tantamount to nationalization. F
Source: Yantra - Veliko Tarnovo (29.04.2014)

Regulator again postpones decision on energy distributor licenses The Bulgarian energy regulator DKEVR again postponed with two weeks its decision to revoke the license of Bulgaria's three distribution companies. On April 7, the decision had already been postponed once about allowing CEZ, EVN and Energo-Pro to get acquainted with the reasons of the committee on the procedures against them. However, then the National Electricity Company (NEC) presented new evidence to the regulator about the debts of the energy distributors to the state company. At today's meeting the energy regulator accepted the requests of the distributors to be given time in order to become familiar with the data of NEC. The Bulgarian watchdog was due to make a final decision today over the operating licences of Austria's EVN, Czech company CEZ and Energo-Pro, which are refusing to pay a combined BGN 318 million that state power provider NEC says it is owed.
Source: Standart (29.04.2014)

Bulgaria's DKEVR Ascribes 2690 Violations to Energy Distributors Power distributors operating in Bulgaria committed 2690 infringements, as the national energy watchdog DKEVR's audit revealed Wednesday. Czech-based CEZ and Energo-Pro and Austrian-based were also accused by DKEVR of having provided false accounts of their revenues, with the latter being "millions of BGN" more than reported, according to Dariknews. They could be facing a minimal fine of BGN 50 M, as statements setting out their infringements are to be prepared within two weeks. Regulator representatives added they would refer the matter to the National Revenue Agency, the Agency for State Financial Integration and, personally, to the Prime Minister. Boyan Boev, who chairs DKEVR, explained expenses of the electricity distribution companies (EDCs) were BGN 818 M less than declared. "Technical losses" declared by the EDCs were, on the other hand, lower that estimated. This "secret" profit was used to increase "administrative expenses", including those for consulting services, commission or managerial services. Some of the costs declared by grid operators are described as "groundless" in DKEVR's audit. EVN Bulgaria Electricity Distribution, CEZ Distribution Bulgaria and Energo-Pro Grids reported to have also gone around Bulgarian legislation on public procurement by using sister companies to provide their goods and services, thus draining significant amount of money from Bulgaria, DKEVR's Boev claimed. "Lack of quality of services" is also among the violations, in Boev's words. The audit of activities of EVN Bulgaria Electricity Distribution, CEZ Distribution Bulgaria and Energo-Pro Grids since 2008, started in the beginning of 2014, before a dispute between DKEVR and the EDCs over debts to the National Electricity Company (NEK) broke in mid-March. Energy regulator officials have claimed it is unrelated to the financial dispute. However, following Wednesday's results DKEVR is still to decide whether to impose fines on the regulators instead of suspending their permits to operate in Bulgaria, as some Bulgarian media suggested. The national regulator has repeatedly postponed its final decisions. On Wednesday, however, Boyan Boev made DKEVR's first explicit comments on prospective fines for the EDCs.
Source: Dnevnik (15.05.2014)

DKEVR : EDCs in Bulgaria have over 2,600 violations The audit of the three energy distribution companies in Bulgaria - CEZ , EVN and Energo-Pro - found more than 2,600 violations. This was announced by the State Energy and Water Regulatory Commission ( DKEVR ) in a press conference . The highest number of offenses is relating to the replacement of meters, it became clear from the inspection. By CEZ alone, 1088 violations were found out of 1283 checks ( 85 % of cases examined ). 349 were the violations at EVN in 553 checks - amounting to 63% of the examined cases. Other irregularities included the reporting of electricity consumption for a period longer than approved by the regulator. As such, consumers reported that instead of the statutory period of 31 days, the EDCs charged for a longer period, which increased the electricity bills of people, announced the regulator. Millions more revenue than established companies are reported throughout. They had a need for many smaller tech losses compared to what they said and were set by the regulatory authority , explained by the regulator . Also, the audit has found that the EDCs had larger revenues and profits than what they have reported. On May 12, the regulator adopted the reports of the working groups of the underlying regulatory audits of the three EDCs , which were prepared during four months by the commission experts and external analysts. These audits should not be confused with the procedure for the withdrawal of licenses which started on March 19, the regulator emphasized.
Source: Standart (15.05.2014)

Bulgaria's UniCredit Bulbank selling Zhrebchevo HPP for BGN 13 million After the loss of its fuel distribution company, Petrol Holding is on its way of letting another precious asset slip through its fingers – Zhrebchevo Hydropower Plant (HPP). The Sliven-based 14.4-MW HPP has been put up for sale by UniCredit Bulbank, probably over unpaid debts, Capital Daily reads. Petrol Holding bought Zhrebchevo HPP from the National Electric Company (NEK) back in 2002. According to its latest financial report, the HPP generated BGN 1.5 million in revenues in 2012. Its profit was BGN 346,000. UniCredit Bulbank is selling the HPP for BGN 13 million. The HPP’s current owner has been pledged as security on loans it took from UniCredit Bulbank in 2007.
Source: Capital (16.05.2014)

Bulgarian energy regulator seeks lower power prices from US-owned TPPs Bulgaria's energy watchdog has sought changes to the contracts with US-owned thermal power plants AES-3C Maritza East 1 EOOD and Contur Global Maritsa Iztok-3. Bulgaria's State Commission for Energy and Water Regulation (DKEVR) seeks changes to the long-term contracts signed in 2001 between the National Electric Company (NEK) and the thermal power plants AES-3C Maritza East 1 EOOD and Contur Global Maritsa Iztok-3. The proposed amendments envisage substantial changes to the price of electricity purchased from the two TPPs as well as free market sales. Under the new agreement, the full cost of energy bought from AES-3C Maritza East 1 is to drop by 30% and the electricity produced by one unit of the TPP is to be sold on the free market. Apart from that, the full cost of electricity purchased from Contur Global Maritsa Iztok-3 is to be reduced by 20% and the electricity produced by two units of the TPP is to be sold on the free market. The decrease in the cost of electricity purchased by the two TPPs is to reduce the expenses of the National Electric Company (NEK) by BGN 424 M in the next pricing period and the positive impact of the measure for the entire period of the long-term contracts is estimated at BGN 5.4 bln.
Source: Standart (30.05.2014)

Watchdog is not a party to the contracts with NEK: ContourGlobal Maritza East 3 TPP State Energy and Water Regulatory Commission is not a party to our contract and is not entitled to set conditions for the contract with NEK, said ContourGlobal Maritza East 3 TPP. The private companies recalled that it has the lowest price for base station operating in full compliance with environmental requirements. "We expect the government to comply with its obligations under the contract," ContourGlobal added. A day earlier the regulator asked two of the four units of the plant to operate on the open market and the price for the purchase of electricity from the other two units to be reduced by 20%. This will serve as an option for a minimal reduction in electricity prices from July 1. The long-term contracts of the two U.S.-managed plants - ContourGlobal Maritza East 3 TPP and AES Maritza East 1 TPP include clauses whereby if NEK starts paying unilaterally lower amounts than the ones pointed in the contracts, it will automatically trigger the guarantee of their contracts.
Source: 3e-news (31.05.2014)

Bulgaria's NEK at Record Loss in 2013 State-owned National Electricity Company (NEK) registered a record loss of BGN 338 M (EUR 169 M) last year, sources in the Ministry of Economy and Energy say. The latest reports by the Bulgarian daily Trud, which cites the sources, comes after reiterated comments by Economy Minister Dragomir Stoynev that a loss of BGN 500 M (EUR 250 M) was expected at NEK for 2013. NEK is yet to publish its report for 2013 and Q1 of 2014, claiming it has until end-July for that purpose. It bases its stance on the Accountancy Act, but other legislation, such as a decree by the Council of Ministers, says that state-owned companies are to hand their reports before April 25. Over the past few months rumors have circulated that NEK is in a state of technical default and that precisely is financial problems triggered a dispute with electricity distribution companies (EDCs) over hundreds of millions of BGN it is allegedly to receive from them. The EDCs, the heating utilities and thermal power stations are among those who claim millions from NEK, the debts of which were estimated at BGN 628 M (EUR 314 M) as of April this year.
Source: Sega (02.06.2014)

The National Electric Company (NEK) is planning to spend BGN 37 million for the rehabilitation of Chaira Pumped Storage Hydro Power Plant (Chaira PSHPP) and the whole Belmeken-Sestrimo Hydropower Cascade. 70% of the money will come from the Kozloduy International Decommissioning Support Fund (KIDSF), managed by the European Bank for Reconstruction and Development (EBRD), while the remaining 30% will come from NEK’s own funds.
Source: Monitor (03.06.2014)

Energy Watchdog Cuts Green Energy Prices Bulgaria's energy watchdog DKEVR proposes a significant cut in the prices at which the energy from renewable sources is bought off. The DKEVR report, publicly discussed on Monday, proposes a 20% decrease of the price of electricity from wind and between 50 and 60% cut of the solar energy prices. Electricity produced by micro and small water power stations will see a minor decrease of between 2 and 4%. The representatives of the wind and solar energy producers, who were present at the meeting, harshly objected to the proposed price cuts and accused DKEVR of violating the procedures in preparing the price report.
Source: Standart (17.06.2014)

US giant Westinghouse is looking for BG suppliers US giant Westinghouse, assigned to construct Block VII of Bulgaria's NPP Kozloduy is evaluating Bulgarian companies, which might be included in the building works of reactor production equipment, service delivery and more, Westinghouse Europe head Mike Kirst told the Bulgarian National Radio. He added that the company is also analyzing opportunities to transfer technology to Bulgaria and to train future operators of its AP 1000 technology. Westinghouse would really want to use the available assets in Bulgaria, including human resources, Kirst pointed out. According to the expert, Westinghouse will be able to find partners and work in Bulgaria as it does on other similar projects around the world. The U.S. company is pleased with the consensus in Bulgaria about the development of nuclear energy and that all political parties in the recent years have supported the VIIth block for NPP Kozloduy. Kirst also added that Westinghouse is gtinget along very well with its Bulgarian partners and that its negotiations in the country are very effective.
Source: Standart (23.06.2014)

Bulgaria seeks EU scrutiny of RES incentives, PPAs with two TPPs The Bulgarian energy regulator said on Wednesday it has notified the European Commission that the long-term power purchase agreements (PPAs) signed with two coal-fired power plants owned by U.S. companies may be in breach of community rules on state aid. The energy regulator said in a statement it has asked the Commission to stay the provision of the state aid until the EU executive issues a final position on the matter. In a separate statement, the State Energy and Water Regulatory Commission (SEWRC) said it has also notified the Commission that the incentive schemes afforded to local power producers using renewable energy sources (RES) could constitute excessive state aid in breach of community law. The regulator said it has asked the Commission to stay partially or fully the provision of state aid to RES producers until it comes up with a final position on the issue at hand. An investigation into the PPAs signed with the ContourGlobal-owned Maritsa Iztok 3 and the AES-owned Maritsa Iztok 1 thermal power plants (TPPs) performed by SEWRC has indicated that the mechanism obliging state-owned power utility NEK to purchase the entire electricity output of the two power stations is not in line with the provisions of the Third Energy Package while providing them with a competitive edge over both existing and potential new market players.
Source: Sega (26.06.2014)

Debts of Bulgaria’s National Electricity Company amassed in 2010- 2014 period BGN 2.9 bn: SEWRC chair (ROUNDUP) On Thursday Boyan Boev, Chairperson of the State Energy and Water Regulatory Commission (SEWRC), held a briefing dedicated to the debts of the National Electricity Company (NEK). According to the structure of NEK’s debts amassed in the 2010 – 2014 period the investment expenses for Tsankov Kamak HPP are estimated at BGN 694 million. The unrecovered expenses for energy purchased from renewable energy sources (RES) producers are estimated at BGN 720 million. The investment expenses for Belene NPP are estimated at BGN 784 million, while the unrecovered expenses connected with long-term agreements amount to some BGN 382 million. The unrecovered expenses for the work of PSHPP in pumping mode in the 2010 – 2014 period are some BGN 392 million. The common unrecovered expenses for transitional periods are estimated at BGN 1,493,785, according to Boev. NEK’s expenses connected with the long-term agreements with AES Maritsa East 1 and ContourGlobal Maritsa East 3 are about BGN 382 million. The company’s expenses connected with RES exploitation of PSHHP are estimated at BGN 1.1 billion. ”Debts of the National Electricity Company (NEK) amassed in the 2010 – 2014 period amount to BGN 2.9 billion,” said Boyan Boev. ”The unrecovered expenses connected with the public supply of electrical energy are estimated at nearly BGN 1.5 billion. The investment expenses connected with investments outside the regulated activities amount to some BGN 1.4 billion,” Boev stated. ”NEK’s debts which are not connected with regulated activities were mainly amassed on the account of 2 investment projects – one of them is Tsankov Kamak HPP, [where they are] at the amount of BGN 694 million, the other is Belene NPP, [where they are] estimated at BGN 784 million. These activities are not to be compensated by the SEWRC. These expenses were not compensated in the past and are not to be compensated in the future,” Boev remarked. In his words, NEK’s amassed debts will be additionally analysed to see what they were spent on. ”Expenses for purchasing energy from renewable energy sources (RES) producers amount to BGN 719,665,” said Boyan Boev, Chairperson of the State Energy and Water Regulatory Commission (SEWRC), speaking at a briefing.
Source: 24 chasa (27.06.2014)

BG electricity shock surprise: Prices up from today instead of October The first day of July brought unexpected electricity price rises in Bulgaria. Bulgarians. From today, the prices of the three distribution companies jumped by an average of 2%, standart daily reports. Originally, the price rise was scheduled for October. The increase is the steepest at CEZ, where the daily rate rose by 2.78%, with the night rate also getting more expensive by 2.22%. For Energo-Pro, the increase in the day and night prices amounts to 2.5% and 1.01%. EVN was the least harshest company on its clients with a 0.64% and 0.22% increase. Just a week ago, Bulgaria's state regulator assured that prices will not move up until October. Electrucity rates, the main reasons between the Bulgarian mass protests last year, fell three times in the last 15 months. Last Wednesday, however, regulator DKEVR disclosed that the National Electric Company has accumulated a BGN 2.9 billion debt. Now there are fears that the July increase will be followed by yet another one in October.
Source: Standart (01.07.2014)

Greek power company Public Power Corporation will establish a subsidiary in Sofia in cooperation with the Swiss company ALPIQ Group, announced the Bulgarian National Radio. Public Power Corporation (PPC) will own 85% of the share capital, and the remaining 15% will be owned by ALPIQ. The joint venture will be engaged in energy trading. Greece's largest power company has announced that the establishment of this subsidiary is part of a strategy of PPC to expand to other markets in Southeast Europe, as well.
Source: Class (09.07.2014)

By the end of this year the electricity prices in Bulgaria might rise again, Ilian Iliev, member of the energy watchdog SERWC said. According to him, it probably will not be more than 3% and would most likely happen in October. The price hike is necessary in order to cover the deficit of the National Electricity Company (NEK). SERWC calculations show that the profits in the next five years could cover a deficit of BGN 1 bln.
Source: Sega (09.07.2014)

CEO of Bulgarian state holding co BEH resigns The state-run Bulgarian Energy Holding (BEH) said on Thursday its executive director Ivan Yonchev resigned from the position due to poor health. After Yonchev's resignation, Bulgarian energy minister Dragomir Stoynev appointed Jacklen Cohen as a member of the board of directors of BEH, it said in a press release. BEH incorporates assets of Bulgaria's sole nuclear power plant Kozloduy, gas monopoly Bulgargaz, gas transmission system operator Bulgartransgaz, telecommunications operator Bulgartel, the National Electricity Company and its wholly-owned system operator Electricity System Operator, coal-fired power plant Maritsa East 2 and the Maritsa East coal mines.
Source: Standart (11.07.2014)

NEK Losses Grew 43% in 2013 The losses of Bulgaria's National Electricity Company (NEK) increased by 43% in 2013, shows its financial audit, published in the Commercial Registry. They amounted to BGN 142.2 mln, while in 2012 they were BGN 99.4 mln. The debts of NEK to various electricity producers doubled to BGN 600 mln. The NEK receivables have also almost doubled from BGN 252 mln in 2012 to BGN 517 mln in 2013. According to the report, those are mostly sums, which NEK claims are owed by the EDC's, but the EDC's don't recognise. The NEK debt to the Bulgarian Electricity Holding increased by 70% to BGN 723 mln. The total NEK debts as of end of 2013 amount to BGN 2.711 bln, by BGN 500 mln more than in 2012.
Source: 3e-news (21.07.2014)

The southern Bulgarian municipality of Radnevo is virtually bankrupt, according to the Mayor, Yulian Ilchev. In a Monday interview for the Bulgarian National Radio, Ilchev said he expected urgent assistance from the caretaker government, adding that he had sent a letter to caretaker Prime Minister Georgi Bliznashki about the problem which Radnevo was facing. Ilchev made clear that the difficulties were due to unpaid installments of BGN 4.4613 M of Bulgaria's National Electric Company (NEK) to state-owned company Maritsa Iztok Mines under a coal mining concession for the second half of 2013 and the first half of 2014. He explained that the concession fee accounted for 54% of the budget of the Radnevo Municipality and it was to be paid before the coal mining company pays taxes, according to provisions of the Concessions Act and the Subsurface Resources Act. Ilchev underscored that the only way for the municipality to avoid stopping current payments and salaries in the sphere of its social activities, education and healthcare was to take out loans. He noted that the town of Galabovo was in similar condition. Galabovo Mayor Nikolay Tonev stopped payments to companies providing services to the municipality over debts of BGN 1 M, or 25% of the amount of the municipal budget. - See more at: http://www.novinite.com/articles/162781/Bulgaria%27s+Radnevo+Municipality+Virtually+Bankrupt#sthash.apOUGW5j.dpuf
Source: Standart (19.08.2014)

Double check starts in the National Electricity Company (NEK). Financial state and performance of the investment program will be inspected by the State Energy and Water Regulatory Commission. At the same time, a verification of company’s payments will be done as well. It is under an order of the Deputy PM Ekaterina Zaharieva after complaints that the company has selectively paid to a part of the debtors at the expense of others. There is no information as to exactly who will perform the financial review. NEK currently owes more than BGN 2.9 billion to producers of electricity, suppliers and banks. The company recorded a loss of nearly BGN 146 million in 2013. The amount would have been BGN 200 million bigger if NEK did not receive a loan from its owner BEH.
Source: Trud (21.08.2014)

Bulgarian Energy Holding 'Awaiting BGN 1.45 B' from Subsidiaries State-owned Bulgarian Energy Holding (BEH) has to collect a total of BGN 1.45 bln of trade receivables and loans it has given out to filian companies, its interim 2014 report says. The bulk of this money, or BGN 1.2 bln (82% of the total), was spent on assistance to the National Electric Company (NEK), with all the loans granted to NEK now consolidated into a single one to be paid in ten years and bearing a 4.49% yearly interest, the document shows according to Trud's website. BEH has stepped into the second half of 2014 at a profit of BGN 48.1 mln, 86% less than at the same time in 2013. The reports points out that failure to gather dividends from subsidiaries this year is the main reason for the low performance. Of all filial companies NEK itself is facing the hardest time, with a loss of BGN 250 mln in end-June 2014, compared to a profit of BGN 17 mln for the same period of last year. Bulgargaz, the national gas supplier, has registered an improvement, with a positive BGN 42.3 mln (up from BGN 2.6 mln in end-June 2013). However, this is mainly due to debts of Sofia's heating utility Toplofikatsiya Sofia to NEK that Bulgargaz bought out earlier this this year.
Source: Standart (25.08.2014)

Bulgarian caretaker Deputy Prime Ekaterina Zaharieva will head the energy board to be established during Wednesday's government sitting. According to a draft decree of the caretaker government, as cited by Sega daily, Zaharieva's Deputy will be Vasil Shtonov, caretaker Minister of Economy and Energy. Members of the board will be the Deputy Minister of Economy and Energy and the Deputy Minister of Labor and Social Policy and the Chair of the Commission for Energy and Water Regulation. An advisor of Zaharieva will act as a secretary of the energy board. The Economic and Social Policy Directorate at the administration of the Council of Ministers will provide administrative service to the new structure. The tasks of the new body will include analyses of the energy sector and the causes for system instabilities, proposals of principles and guidelines for the sustainable development of the sector, as well as measures to solve problems to stabilize the system, and proposals of legislative changes.
Source: Duma (26.08.2014)

Bulgarian state-owned electricity company NEK is expected to accumulate a further BGN 1 billion in debt over the next year, the country's energy ministry said on Wednesday. NEK’s liabilities currently stand at BGN 3 billion, energy minister Vasil Shtonov said. As an operator on the regulated market, NEK is obliged to buy a certain amount of electricity from producers at fixed prices that are much higher than the average, Shtonov noted. On Tuesday the energy ministry said NEK paid BGN 1.29 billion to power producers during the first seven months of the year. Its outstanding payments to power producers amounted to BGN 1.13 billion at end-July, up from BGN 885.8 million on January 1. NEK paid over BGN 183 million to Bulgaria’s sole nuclear power plant Kozloduy (NPP), and BGN 88.7 million to state-owned thermal power plant (TPP) Maritsa Iztok 2, in the January-July period. It also paid over BGN 228 million to Maritsa Iztok 1 TPP, owned by US company AES, and BGN 222.2 million to Maritsa Iztok 3 TPP, owned by another US company - ContourGlobal, over the review period.
Source: Dnevnik (28.08.2014)

Bulgaria Decides to Set up Energy Board Bulgaria’s caretaker cabinet on Wednesday decided to set up Energy Board to step up reforms in the energy sector with the aim of boosting its transparency and market efficiency. The new structure will be a standing consultative body with the government that will analyze the state of the energy sector in Bulgaria, identify the factors that prompt its instability, and determine the principles of its sustainable management, the cabinet said in a statement. The Energy Board will also propose measures for maintaining stability in the sector. The caretaker cabinet has made the creation of energy board one of its top priorities when it assumed office earlier this month. Caretaker Deputy Prime Minister in charge of economic policy Ekaterina Zaharieva will head the Energy Board. Economy and Energy Minister Vasil Shtonov will be Zaharieva’s deputy. Meanwhile, the cabinet has asked the head of Bulgaria’s energy regulator DKEVR Boyan Boev to resign. Boev’s deputy Elenko Bozhkov and DKEVR member Lilyana Mladenova have also been asked to leave.
Source: econ.bg (28.08.2014)

Bulgarian state energy holding firm BEH to raise capital Bulgarian state energy holding company BEH said on Tuesday it will increase its capital. The company ended 2013 in the green and, after paying dividend, has asked the energy ministry for a nod to convert the remainder of last year's profit into capital, BEH's press office said, adding that a higher capital base would send a positive signal to investors. Earlier on Tuesday, news daily Trud reported, quoting data from the commercial register, that BEH will raise its capital by BGN 336 million. It also said BEH will pay BGN 20 million in dividend for last year. Last month, local media reported that three BEH subsidiaries were planning changes to their capital. The country’s sole nuclear power plant (NPP) Kozloduy has asked to increase its capital to BGN 165.6 million from BGN 153.8 million, while thermal power plant (TPP) Maritsa Iztok 2 plans to raise its capital to BGN 40.1 million from BGN 38.5 million. Meanwhile, gas monopoly Bulgargaz has applied to reduce its capital to BGN 206.2 million from BGN 257.7 million. BEH’s non-consolidated after-tax profit rose by nearly 39% to BGN 397 million in 2013 as revenues fell 56% to BGN 246.5 million. BEH incorporates assets that include NPP Kozloduy, Bulgargaz, gas transmission system operator Bulgartransgaz, telecommunications operator Bulgartel, the National Electricity Company, system operator Electricity System Operator, Maritsa Iztok 2 and the Mini Maritsa Iztok coal mines.
Source: Capital (10.09.2014)

World Bank Pledges Support for Bulgaria's Energy Reform The World Bank is ready to help Bulgaria reform its energy sector, the Regional Development Ministry said. The Bank will support the government in drafting systemic measures for balancing Bulgaria’s energy system, the ministry said in a statement following a meeting between Caretaker Deputy Prime Minister in charge of economic policy Ekaterina Zaharieva and senior World Bank officials in Sofia. Zaharieva, who also is Regional Development Minister, met earlier on Thursday with the recently appointed new World Bank country manager for Bulgaria Antony Thomspon and Mamta Murthi, World Bank Country Director for Central Europe and the Baltic Countries. Energy is of utmost importance to Bulgaria and the country has the World Bank’s support, Mamta Murthi said. The World Bank will provide expert advice to Bulgaria’s energy ministry and energy regulator DKEVR relating to instruments for analysis and long-term decision making in order to considerably improve DKEVR’s administrative capacity and make sector policies transparent and market oriented.
Source: Standart (12.09.2014)

Bulgarian electricity prices set to rise by up to 10% from Oct 1 Electricity prices will rise by up to 10% from October 1, regulator DKEVR President Svetla Todorova informed. She has categorically refused to give a more accurate prognosis. What is definite is that from October there will be differentiated electricity prices for the rich and the poor in Bulgaria. Todorova explained that the aim of the regulator is to somewhat compensate somewhat the earlier decisions that led to deficiencies in the system. Unlike that of water, heating costs are unlikely to rise next month. Todorova added that it is still not clear if the regulator will accept the demand of Bulgargaz to lift gas prices by 1.59% since not everything in the application of the company is well-founded.
Source: Standart (18.09.2014)

Miners of the Cherno More mine have spent more than 35 hours 300 meters below the ground as a strike. The 62 men, 40 of whom have spent fthe second night in a row under the ground, demanded to receive their wages due in July and August. On Thursday two of the workers had to be brought out because of blood pressure problems, while today another one was taken up by mine rescue workers. The striking miners left the galleries late afternoon today, when their long awaited salaries were finally paid. After 40 hours spent 300 meters underground, and two blockades on the road between Bourgas and Sunny Beach, the miners have obtained their salaries for July and August. "Finally some good. BGN 450,000 were translated by the National Electric Company. Though the sum was not the whole that the workers demanded, the miners still decided to end their strike. Êîïèðàíî îò standartnews.com
Source: Darik Radio (23.09.2014)

Power Price Hike to Inject BGN 200 M into State-Owned Eclectic A power price hike will help inject slightly over BGN 200 mln into the National Electric Company (NEK), while its losses are expected to reach BGN 1 bln over the next year, according to Bulgaria’s caretaker Minister of Economy and Energy. Vasil Shtonov, explained that the planned increase in electricity prices as of October 1 was part of the strategy of Bulgaria’s caretaker government for the stabilization of the energy sector. He specified that the change of CEO of the Kozloduy Nuclear Power Plant had also been part of the measures aimed at boosting the efficiency of the management of the energy sector. Shtonov expressed his appreciation of the achievements of its former CEO, Ivan Genov, stressing that the N-plant had needed a new person for the next stage of governance. Bulgaria’s caretaker Minister of Economy and Energy informed that the authorities were also working on an analysis of the management of state-owned energy companies to identify necessary changes. He underscored the need for a new approach in order to make better use of the available resources.
Source: econ.bg (24.09.2014)

Negotiations with US plants to change contracts Negotiations to renegotiate long-term contracts to purchase electricity from the two American plants Maritsa Iztok are under way, said Deputy Economy Minister Anton Pavlov. Preferential rates for the purchase of electricity from renewable energy plants would also be Will renegotiated. Investors have also expressed will to renegotiate because "it is hard to do business this way," Deputy Minister Pavlov said. Continuous rise in electricity is not the best option to save the energy system, but is only one of the hypothesis, said Pavlov.
Source: Standart (25.09.2014)

NEK Expects Additional BGN 1 bln Deficit Bulgaria's National Electricity Company (NEK) expects additional BGN 1 bln deficit for the current regulation period, said the company's Ventsislav Markov at a session of the energy watchdog SEWRC. “We expect another BGN 1 bln deficit for this regulation period,” said Markov and added that even if SEWRC approves the 10% price hike of electricity from October 1, it would compensate only BGN 140 mln of NEK's deficit. The SEWRC head Svetla Todorova said that if the price hike was not enough to stabilise the financial situation of NEK, the watchdog was willing to take other measures, including renegotiating conditions with the thermal and renewable sources power plants. Representatives of the EDCs, who were also present at the meeting, complained that SEWRC did not accept their full technological expenses and this was posing difficulties for them. SEWRC will make its final decision on the electricity prices for the last trimester of 2014 at a closed session on September 30.
Source: vesti.bg (26.09.2014)

Bulgaria to seek rescheduling of PPAs with private TPPs Bulgaria's caretaker government plans to seek rescheduling of the long-term power purchase agreements (PPAs) signed with two coal-fired power plants owned by U.S. companies, the energy ministry said on Friday. The Maritza Iztok 1 coal-fired plant operated by AES and thermal power plant Maritza Iztok 3, owned by ContourGlobal, have signed 15-year PPAs with state-owned power utility NEK. The power plants have a 50-year lifespan so the PPAs can easily be rescheduled to ease the related financial burden in the coming years, Vasil Shtonov said in a statement published on the ministry's website. According to state-run news agency BTA, Shtonov said he hopes the country's next government will continue this initiative as investors would hardly change 15-year contracts within the timeframe of the mandate of a caretaker government. ContourGlobal acquired a 73% stake in the 908 megawatt (MW) Maritsa Iztok 3 TPP from Italy's Enel in June 2011. In 2011, energy group AES launched the Maritza East 1 TPP with a 670 MW capacity.
Source: news.bg (29.09.2014)

Companies in Bulgaria invested BGN 8 billion in green energy Investors invested BGN 8 billion in green energy in Bulgaria in 2012, an analysis of the European Commission showed. According to it, 11 EU member states have deficits in electricity tariffs: Bulgaria, Spain, Portugal, Greece, Malta, Romania, France, Italy, Hungary and Estonia. The nominal price of electricity in Bulgaria is the cheapest one and it remained unchanged between 2008 and 2012. In addition, there was a boom of green power capacities in the country over the last five years thanks to the generous preferential tariffs for solar and wind power. Because of the low electricity price, there is a deficit of 1%-1.5% of GDP, the European Commission estimates. This made BGN 800 million-BGN 1.2 billion in 2013. The National; Electricity Company (NEK) owes debts worth BGN 2.3 billion (3% of GDP). Of them one third are owed to energy companies.
Source: Presa (07.10.2014)

Three Countries Give Bulgaria EUR 16 mln for Energy Efficiency Norway, Iceland and Liechtenstein have announced they will grant some EUR 16 mln to support Bulgarian projects involving energy efficiency and renewables. The European Economic Area (EEA) Financial Mechanism adopted for 2009-2014 will be used to allocate the funds. Both state institutions and municipalities can apply to receive money under energy efficiency projects, with the sum varying from EUR 170 000 to EUR 500 000. Center-right GERB, who won Bulgaria's parliamentary elections on Sunday, have pledged to put emphasis on such projects and thus stem the flow on rising energy bills. According to caretaker Deputy Economy Minister Anton Pavlov, the Operational Program "Renewable Energy and Energy Efficiency" is also likely to cut some 35 000 tons of CO2 if successfully implemented.
Source: National radio (08.10.2014)

Bulgarian power utility claims 3.4 mln euro in receivables from Energo-Pro unit Bulgarian power distributor Energo-Pro Sales, a unit of Czech group Energo-Pro, said it has received a statement of claim by the country's National Electric Company (NEK) for BGN 6.7 million in receivables representing unpaid invoices for provided electricity, part of a total of BGN 67.3 million in claimed receivables. The claim includes also BGN 595,400 in interests, part of the entire amount of claimed interests which is BGN 5.95 million, Energo-Pro Sales said. Arbitration proceedings have been instituted under the Arbitration Court with the Bulgarian Chamber of Commerce and Industry based on the statement of claim, it added. Energo-Pro Sales said it regards the claims as completely unfounded, since the claimed receivables have been paid by way of offsetting of reciprocal obligations. Energo Energo-Pro Sales is majority-owned by the electricity supplier for northeastern Bulgaria Energo-Pro Bulgaria, a wholly-owned subsidiary of Czech power group Energo-Pro.
Source: money.bg (22.10.2014)

EU leaders adopt 'flexible' energy and climate targets for 2030 EU leaders committed by 2030 to reduce greenhouse gas emissions by at least 40%, and increase energy efficiency and renewables by at least 27%. French President Francois Hollande said the deal would send a clear message to big polluters such as China and the United States ahead of UN talks in Paris next year to agree global legally binding greenhouse gas emissions. A special "flexibility clause" was added to the final text, making it possible for the European Council to return to the targets after the UN summit in December 2015. But Hollande told reporters that the clause was not dependent on the Paris talks, as the Council can revisit the targets anytime. Hollande, who will host the negotiations, said it was a “conclusive and definitive” agreement. It was essential a deal was reached before the Paris summit next year, he said. But the efficiency and renewables targets were watered down. The European Commission had called for an efficiency goal of 30%. That was reduced to 27% across the EU. The EU level target is not legally binding at the national level or EU level and will be reviewed in 2020 “having in mind” a 30% EU-level target, according to the summit conclusions.
Source: Standart (27.10.2014)

TPP Varna is trying to escape closure Two months prior to close early next year, TPP Varna offered a new option for its salvation. Company director Mincho Minchev said that in vase of a gas crisis the plant can provide to part of the energy needs of Bulgaria. He saw the outcome in the signing of two new contracts. The first of these is with ESO to maintain one unit as cold reserve. Second - with NEK, which undertakes to purchase certain amounts of energy. They will assure the capacity of 120 megawatts. "In 2009, during the gas crisis, thanks to TPP Varna we experienced mild winter. But since then, after the inclusion of all wind and solar power plants there have been no activation of the cold reserve of TPP Varna, explained Minchev. In recent months, the coal plant and its owner - CEZ, try to answer the ecological requirements for large coal plants.
Source: Sega (28.10.2014)

Bulgaria's Aug power output falls 5.5% m/m Production of electricity in Bulgaria fell by 5.5% on a monthly basis to 3,688 gigawatt-hours in August, the National Statistics Institute (NSI) said. Year-on-year, power output in the country decreased by 6.5% in August, the NSI said in a statement. Production of solid fuels fell by 37.9% on the year, while unleaded gasoline production decreased by an annual 6.7% in August. Natural gas output declined by an annual 42.9% in August.
Source: Duma (31.10.2014)

Bulgaria’s state-owned National Electric Company (NEK) has reported a loss of BGN 425 M for the first nine months of 2014. NEK’s loss has increased by 275,2% year-on-year, according to a financial report of the company, as cited by econ.bg. At the end of June 2014, NEK reported a loss of BGN 250 M. NEK says that the power price hikes introduced on July 1 and October 1 will not suffice to stabilize the company. NEK blames the poor results on the pricing policy of the State Commission for Energy and Water Regulation (DKEVR), the obligation to buy larger quantities of expensive electricity, and the increasing number of consumers switching to the free market. “In the first nine months of 2014, the company keeps functioning against the backdrop of unfavorable pricing and economic conditions, at the same time absorbing all financial drawbacks and shouldering the entire commercial risk on the electricity market,” NEK states. The 21.6% year-on-year decrease in the output of hydropower plants has also contributed to the poor condition of the company. According to the report, Bulgaria is plagued by a surplus of electricity and hydropower plants are unnecessary. NEK reports a 4% year-on-year decrease in purchases of electricity. NEK informs that the surplus of electricity forces it to pay a higher price to US-owned thermal power plants AES-3C Maritza East 1 EOOD and Contour Global Maritsa East 3. In the case of a surplus of electricity, when the two TPPs are not functioning, NEK is obliged to pay them for their availability. According to the financial report of NEK, the purchase of electricity produced by the Kozloduy nuclear power plant, which is cheaper, drops by 21.8%.
Source: Monitor (03.11.2014)

The largest state-owned enterprise Bulgarian Energy Holding (BEH) remains in large debt, its report for the first nine months of the year shows. The company has handed out loans and has to take from related parties and Heat Supply-Sofia a total of over BGN 1.75 billion. As to the first quarter of 2014 the figures amounted to BGN 1.5 billion. Much of this amount is provided by the bond issue of BEH, which matures in 2018. The majority of the loans have been granted to the troubled subsidiary NEK. Furthermore, BEH group includes Electricity System Operator, Bulgargaz, TPP Maritza Iztok 2, Bulgartransgas, NPP" Kozloduy, Bulgartel and Mines Maritsa Iztok. Revenues of BEH (mainly from dividends) for the nine months are BGN 148.6 million less because of poor financial results of its subsidiaries. The holding has reduced the price of its services to companies in the group.
Source: Trud (03.11.2014)

Bulgarian Tyre Manufacturer Vidachim Faces Closure Bulgaria's car tyre maker Vidachim may stop functioning, leaving 600 people unemployed in the poorest region in the country and in the EU. Tsvetomir Leshtarski, CEO of Vidin-based Vidachim, told the State Commission for Energy and Water Regulation (DKEVR) that the company would stop manufacturing industrial tyres on Thursday. Leshtarski spoke during an open sitting of DKEVR on a procedure for an update of sale prices of electricity of the company. Electricity production is currently the main source of revenues for the company, which has made a name as a tyre manufacturer, according to reports of news.bg. However, the company only manufactures small quantities of special industrial tyres at present. Vidachim faces closure because Bulgaria’s state-owned National Electric Company (NEK) owes it around BGN 19 M, thereby preventing it from buying coal and paying salaries. Leshtarski was adamant that all employees of the company would have to be dismissed unless NEK managed to pay back a sufficient portion of its debt.
Source: Standart (13.11.2014)

Bulgarian Energy Holding Conducts Top-level Reshuffle at Several Companies The Board of Directors of the Bulgarian Energy Holding (BEH) has carried out a top-level reshuffle at a number of state-owned energy companies. Georgi Hristozov and Georgi Zlatev have been removed from the Board of Directors of the Maritza Iztok mines (Mini Maritsa Iztok EAD) and are to be replaces by Dian Chervenkondev and Nikolay Dikov, according to a media statement of BEH. Andon Andonov keeps his place on the BoD of the Maritza Iztok mines. An Executive Director of the coal mining company is to be elected at a BoD sitting. Ekaterina Istatkova has been removed from the post of Chief Executive Officer of the National Electric Company (NEK). Istatkova is to be replaced by Petar Iliev, who has been a member of the governing body of NEK. Changes have also been made to the Executive Board of the Electricity System Operator (ESO), which welcomes Ivan Yotov, Dimitar Valchanov and Milko Milkov as new members. Diyan Dimitrov has been elected member of the Board of Directors of state-owned thermal power plant Maritsa Iztok 2. He replaces Mihail Mitkov. The changes will enter into force after their inscription into the Business Register. The changes at the governing bodies of the state-owned energy companies are aimed at streamlining their management and stabilizing their financial condition, according to the media statement of BEH.
Source: Sega (27.11.2014)

BEH provides Bulgargaz with loan in order to pay Gazprom back Bulgarian Energy Holding (BEH) will provide Bulgargaz with a loan, so that the gas company can pay for the natural gas, supplied by Gazprom, Severin Vartigov from BEH announced at a conference. Several days ago, it became clear that none of the banks in Bulgaria would grant a loan to the company. Bulgargaz faces some financial difficulties as it has BGN 120 million of uncollected receivables and almost BGN 20 million blocked in Corporate Commercial Bank.
Source: Duma (05.12.2014)

State watchdog sets gas prices Friday The State Committee on Energy and Water Regulation will set the price of natural gas in the first quarter of 2015 at a meeting behind closed doors on Friday. This will be the price paid by end suppliers and clients, BGNES reported. SCEWR member Dimitar Dimitrov said, "It is hard for us to say whether there will be a gas shortage because of Bulgargaz this winter. The price of natural gas will not affect suppliers adversely in the first quarter of next year." He added that in winter gas suppliers enjoy higher revenue and therefore pay the public supplier more, which minimizes the risk of shortage. The quantities available at Chiren gas depot – usually between 140 and 160 mcm – could meet domestic demand for a given time. However, it isn't economically feasible to hold this gas there and import other gas, Dimitrov said. Bulgargaz's decision is logical and probably supported by the shareholders. He assured there was always between 100 and 150 mcm of gas at Chiren at any point in time.
Source: Standart (17.12.2014)

Difficult modernization for Heat Supply – Sofia Heat Supply Sofia gets preferential price for generated electricity (at present it is BGN 470 for Mwh) though it does not cover requirements for effective production. This is possible thanks to amendments in the Energy Act that say that preferential tariff can be paid to enterprises which do not have the capacity for high efficiency but have approved of investment program that envisages achieving such a goal. Heat Supply Sofia has lots of ambitious aims in terms of its investment in the period 2015-2018. The company plans to invest a total of BGN 496 million. Of it BGN 282 million will be equity funds (13% of planned investment) and loans (44%). The rest will be insured via European programs. The money will be invested in achieving technical parameters for high efficient combined production, new CHP capacity and installation of waste recovery. As a result heat supply Sofia will produce 11% more electrical energy as compared to the period 2010-2014. For the period 2015-2019 the company expects accelerating profit to the amount of up to BGN 44.7 million in 2019. Towards 2019 the collection rate of the company is projected to reach 74% in just over 55% this year.
Source: Capital (22.12.2014)