The privileged consumers will only fill in a form in NEC, with which will specify themselves as such ones, became clear at a seminar for the application of the new Energetics Law. After filling the forms, the companies can conclude direct contracts with the central producers of electricity and with NEC, as a trade operator. So far the candidates have passed through a complicated process of certification by the State Energetics Regulation Commission (SERC). The conditions, which regulate whether a company can buy electricity at free dealt prices, will be listed in the new decree for access to the electric networks. The two major requirements are the candidates not to have debts to NEC or to electricity-distribution companies and to consume minimum quantities of electricity, defined by SERC. At the moment privileged companies with annual consumption over 100 GW are: Maritza-iztok mines, Stomana industry, KZM-Plovdiv, Assarel medet, Elatzite med, Umicore, Devnia tzument, LUKoil-Neftochim, Agropolichim and Neochim. Technical conditions for real starting of work in the liberal segment of the market will be available in the beginning of April, 2004. In the end of 2004 for privileged will be also admitted companies with consumption over GW/h and by 2007 they will be able to take electricity from selected by them station or trader. During 2004 sale quotes at market prices were freed from TPS Maritza-iztok 2, TPS Varna, TPS Bobovdol, TPS Ruse, TPS Maritza-iztok 3. The electricity from NPS Kozlodui and TPS Maritza-iztok 3 will be sold only to NEC. Kremikovtzi dropped out from the list of the privileged consumers in 2004 because of debts to NEC. OZK-Kurjali also failed to take permission because SERC found out that the consumption of the company in 2002 reduced under 100 GW/h.
Source: Pari (29.01.2004)

One of the requirements for our accession to EU is to liberate Bulgarian electricity and gas markets. Now they are held by monopolists – NEC buys the entire electricity, produced by the stations and sells it at regulated prices for public and industrial needs. Bulgargas is the sole importer, wholesaler and transit company for natural gas in the State. The new Energy Law envisages the markets of electricity and gas to liberate regularly. For this purpose will be allowed privileged consumers that will be able to buy energy from the producer that sells at the most reasonable prices and to transfer it through the networks against a transfer fee. By the end of March has to be adopted a decree for access of other countries to the electricity-transfer and distribution network. According to the decree, the privileged consumers in 2004 are those with over 100 million and with 40 million kw/h annual consumption of electricity. In 2005 privileged consumers will also be those with over 20 million and during 2006 – with over 9 million kw/h. The market liberalization must be full even if the public subscribers choose the supplier in July, 2007. At the moment the market does not stimulate the producers to cut their costs, neither to offer the consumer a lower price of the final product. The price, at which NEC buys out the electricity from them, is confirmed by the State Energetic Regulation Commission in accordance with the costs that can be proved by the respective company. The Commission has already defined that in 2004 23 per cent from the producers’ manufacture have to be sold at the market principle and they must find clients for it, otherwise there will be registered a loss. The percentage of the non-realized energy will grow proportionally with the extents of the market’s opening. This will force them to cut the production costs in order not to bankrupt. For the first six months of 2004 from TPS Maritza-iztok 2 were liberated 880 000 MW/h, from TPS Varna – 520 000 MW/h, from TPS Bobovdol - 340 000 MW/h. TPS Ruse can sell at the free segment electricity, produced only by IV block. The electricity from NPS Kozlodui and TPS Maritza-iztok 3 will be sold only to NEC. Companies that receive licenses to trade with electricity from the State Energetic Regulation Commission, will be able to buy electricity from all stations, to mix cheaper and more expensive productions and to offer lower prices than NEC. The trade will be realized through bilateral contracts between the producers and consumers. On them will be registered the main quantity of electricity - 95-97 per cent and for the rest 3-5 per cent will have a balance mechanism. The prices will be confidential and won’t be known even to the trade operator. The privileged consumers have to pay to NEC a transfer fee for using the network that is BGN 11.80 per MW/h, without VAT as of July 1, 2003. The first privileged consumers are 10 big industrial companies with consumption over 100 billion kw/h and without debts to NEC and electricity-distribution companies. These are Maritza-iztok mines, Stomana industry, KZM, Assarel Medet, Elatzite med, Umicore med, Devnia cement, LUKoil-Neftochim, Agropolichim and Neochim. Their interest to take part in the free market is dictated by the opportunity to drop out NEC and to deal the quantity and price of the electricity directly with the producer.
Source: Pari (05.02.2004)

Yesterday, the investors in TPP Maritza Iztok 3 started a programme for voluntary dismissals. If an employee agrees to be dismissed voluntarily within a 7-day term as of yesterday, they would receive a serious compensation, which would be determined individually. This is only the first stage of the overall personnel optimization plan. According to the investors from the US company Entergy and Italy’s Enel, the whole program has been developed jointly with the trade unions.
Source: Sega (18.02.2004)

Energy company Maritza Iztok 3, which manages the thermal power station, reported a profit of BGN 56 million at the General Meeting of the shareholders. The full amount of the profit will be reinvested in the rehabilitation of the power station. No dividends will be distributed. The joint company will pay corporate taxes in amount of BGN 20 million.
Source: BTA (27.02.2004)

The profit of TPS Maritza 3 JSC for 2003 is BGN 56 million was announced by "Energy Company Mariyza East 3", that manages the TPS. The whole profit will be reinvested in rehabilitation of the TPS and no dividends shall be distributed for the year 2003. Since the beginning of April, when the energy company became woner of the TPS until the end of 2003 BGN 246 million were invested in the TPS, mainly in the rehabilitation of Block 2 and construction of sulfur cleaning installation.
Source: Monitor (27.02.2004)

The Government will discuss on Thursday a letter project for political support of the construction of hydro section Tzankov kamuk, was reported from the Ministry of Energetics. The amount of the project amounts to EUR 200 million and is executed in accordance with agreement with Austria for reduction of the harmful issues of carbon dioxide. The object that will be built during the next 4 years is a dam and HPS Tzankov kamuk. The letter for political support is a condition for the financial finalization of the project, explained the Deputy Minister of Energetics Mr. Ilko Yotzev.
Source: Dnevnik (02.03.2004)

The Managing board of TPS Maritza 3 JSC, Dimitrovgrad convenes an extraordinary shareholders meeting on April 2, 2004.
Source: State Gazette (02.03.2004)

The first EUR 250 million investment in the TPP Maritza Iztok 3 modernization project is already a fact. The total value of the project is EUR 600 million, Mr. Enrico Vialle, - Director of the energy company Maritza Iztok 3, which is owned by Italy’s Enel (60 per cent) and Entergy (40 per cent), announced. The company’s 2003 EUR 25 million profit has been invested in reconstruction. The complete rehabilitation should end in March 2006.
Source: Standart (12.03.2004)

Vratza’s mayor Mr. Voyslav Bubev ceased the Prosecutor’s Office of Appeal about the sale of 55 per cent from TPP Vratza SP JSC. The majority shareholder in the heating distribution company is the company Camibo, which is owned by the businessman from Samokov Mr. Hristo Kovachki. He bought his share in the Vratza-based company in two stages through the stock exchange for BGN 488 000. The remaining 45 per cent from the company’s capital will be sold through the exchange starting March 15. According to Vratza’s mayor, the deal provides no guarantees the company’s activity would be kept. The mayor protested against the method of the sale. According to him, it is against the Law on Energy Efficiency.
Source: Pari (12.03.2004)

The Italian company ENEL wants to build two new energy units on the platform of TPP Maritza Iztok 3. Currently, the plant is being modernized by a holding, in which the Italian company holds a 60-per cent stake. The remaining 40 per cent are held by the US company Entergy. ENEL had sent an official letter to the Ministry of Energy and Energy Resources stating its will, Mr. Georgi Georgiev – Deputy Director of Maritza Iztok – confirmed.
Source: Standart (06.04.2004)

The US energy company AES, Japan’s Mitsui and Italy’s Enel are going to compete for the building of substituting electrical capacities on the platforms of TPP Maritza Iztok 1, 2 and 3, Ministry of Energy announced. The information so far was that the substituting capacities on the platform of TPP Maritza Iztok 1 would be built by AES. The project to the value of around EUR 1 billion was delayed with around 3 years because of the temporary financial difficulties the company was experiencing. In 2003, AES stabilized and officially stated its intention to build the new plant.
Source: Pari (07.04.2004)

When the big consumers start to receive electricity on direct contracts with the electric power stations, they lose the right to buy from NEC or electricity-distribution companies except on conditional contracts. The delivery of electricity on conditional contracts will be executed at fixed prices without weekend tariffs. These specifications will include the project of Rules for the trade with electricity, which regulates how producers and big consumers will conclude direct contracts for delivery of electricity. As a compensation of the canceled weekend tariffs, the prices on direct contracts won’t be regulated and will be familiar only to the sides on them. The consumer is obliged to conclude a contract with NEC or any electricity-distribution company for the cases, in which will use quantities, bigger or less than the declared. The companies have to forecast their consumption for one week forward if the deliveries are direct. On this base, NEC as an operator prepares a schedule and the station produces the certain quantity. The market organization will be realized by NEC. The latter will register the trade participants in a register. At the moment the privileged consumers are with annual consumption over 100 GV/h – Maritza iztok mines, Stomana industry-Pernik, KZM-Plovdiv, Assarel medet-Panaguyrishte, Elatzite med, Umicore-Pirdop, Devnia tziment, LUKoil-Neftochim-Burgas, Agropolichim-Devnia, Neochim-Dimitrovgrad. After the middle of 2004 the market will be also opened for companies with consumption of over 40 GV/h. In 2007 each consumer has to be privileged. For the time being sellers will be TPS Maritza-iztok 2, TPS Varna, TPS Bobovdol, TPS Ruse, TPS Maritza 3, plant stations and some of the HPSs.
Source: Pari (13.04.2004)

Italian company Enel registered 11.2 per cent increase of its operational profit during the first quarter of this year in comparison with the same period of 2003. The foreign company is a majority owner of TPS Maritza-iztok 3 and is a candidate for the electricity-distribution companies, its gross operational profit is EUR 2.642 million.
Source: Sega (14.05.2004)

An investment of nearly EUR 2 bln is needed for the recovery of the Maritza -iztok complex in a way to continue working after 2007. The three coal stations should be innovated to correspond to the European standards. A part of the money is already found. The problem is in the construction of two powers with total capacity of 650 megawatts in Maritza-iztok thermo-electric power station.
Source: Banker (07.06.2004)

Thermal power plant (TPP) Maritsa Iztok 2 will sign a 5-year contract for the purchase of its electricity output by the National Electricity Transmission Company (NETC), clearing the way for the fitting of units 5 and 6 of the plant with desulphurisation installations. This will be third long-term power purchase contract in Bulgaria's energy sector after the 15-year fixed-price deals sealed with U.S. company AES for the construction of a replacement capacity on the site of the Maritsa Iztok 1 TPP and with the Enel/Entergy partnership for the rehabilitation of the Maritsa Iztok 3 TPP. EBRD has pledged EUR 35 mln for the Maritsa Iztok 2 project if it is backed with a long-term power purchase agreement. The EBRD board will discuss the loan on June 18. The bank will consider the project for the desulphurisation installations together with the modernisation contract for the first four units of the Maritsa Iztok 2 plant commissioned to Japan's Mitsui. EU's ISPA program will provide another 30 mln euro for the project. The long-term contract for Maritsa Iztok 2 will be inked only with the consent of the State Energy Regulation Commission (SERC) but the chief of the power industry regulator has indicated they are leaning in favour of the deal. Maritsa Iztok 2, which has eight units with a total capacity of 1,450MW, is located at the Maritsa East lignite coal mining complex in Southern Bulgaria that generates 30 per cent of the country's power output. The signing of another long-term contract will further narrow the liberalised segment of the Bulgarian energy market where major electricity consumers are able to negotiate directly with power producers. The reduction in the deregulated share of the market has prompted SERC to allow the Kozloduy nuclear power plant to sell electricity to privileged consumers (defined as companies with annual consumption of over 100gW and no outstanding liabilities to NETC).
Source: Dnevnik (16.06.2004)

Nuclear power plant Kozloduy, the thermal power plants of Varna, Rousse, Bobov Dol and Maritsa Iztok 2 and the seven local electricity distribution companies have asked the State Energy Regulatory Commission (SERC) to approve higher electricity prices and higher fees charged from the National Electricity Transmission Company (NETC) for having their capacity at its disposal on standby. Under the effective legislation, SERC semi-annually reviews the expenditures and pricing policies of the domestic energy companies. The commission discussed the power plants' proposal at a closed-door meeting on Wednesday. The power plants argue that their expenditures are rising as a result of the long-term contract between the Maritsa Iztok 3 power plant and NETC on the purchase of electricity, of the hike in prices of imported coal, and of NETC's practice of purchasing electricity from renewable sources at preferential prices. The country's biggest power-generator Kozloduy reported BGN 54 mln of extra expenditures for the transportation of spent fuel to Russia, which prompted it to request an increase in electricity prices by BGN 3.33/MW to BGN 15.86/MW, and of the standby fee by BGN 1.41/MW to BGN 27.19/MW. The plant's managers explained that they will challenge SERC's decision if they find it dissatisfactory. The SERC working group came up with a price that was 15.42 per cent lower than what Kozloduy wanted. The Bobov Dol thermal power plant proposed a rise by BGN 0.03/MW in electricity prices and by BGN 0.61/MW in the standby fee. The working group responded with a price that was 7.83 per cent lower. The regulator is likely to avoid a dramatic hike in prices as it would affect the tariffs for household and industrial consumers.
Source: Dnevnik (01.07.2004)

The Annual General Meeting of the shareholders of Thermo-electric power station Maritsa 3 JSC - Dimitrovgrad, Bourse code MR3, which was conducted on June 28, 2004, decided that the company should not distribute dividends as of 2003 . Thermo-electric power station Maritsa 3 JSC - Dimitrovgrad reported a profit in amount of BGN 1 323 000.
Source: Capital market (05.07.2004)

The local thermal power plants have until 2016 to bring their capacities in alignment with the EU's air pollution requirements. Private-owned Brikel and Maritsa Iztok 3 will reduce their annual production to 20,000 hrs after 2007, and will then be shut down as part of the energy ministry's measures connected with this country's accession to the EU. The energy ministry disclosed its plans after late last week experts said the Maritsa Iztok complex had polluted the air over the town of Stara Zagora. The ministry, however, dismissed the allegations. The three power plants of the Maritsa Iztok complex which run on lignite coal generate some 40% of Bulgaria's electricity. Bulgaria has pledged to curb by 2012 its CO2 emissions - whose main source are the thermal power plants - by 8%. By 2008 it should also bring the SO2, dust and nitrogen oxides within European standards. The PR officer of Hristo Kovachki, the owner of Maritsa Iztok 3 and Brikel, said they are discussing the size of future investments and will do everything within their powers to ensure that the plants remain in operation. Some plants can meet the EU requirements without having to install desulphurisation facilities if they use lower-sulphur contents coal, consultant Georgi Bosev comments. Bulgaria and the EU have agreed to postpone the closure of the Bobov Dol thermal power plant until 2008-2018. Some 80-150 mln euros, however, will have to be invested in the plant's refurbishment. Another two plants pending privatisation, in Varna and Rousse, are also to be modernised step by step. To meet the EU requirements, the owners of the local thermal plants will have to invest in their upgrade in the course of four years 1.2 bln levs, which is about 4% of this country's GDP. The future owners of the plants of Varna, Rousse and Bobov Dol are expected to outfit their capacities with new filters and desulphurisation facilities and to switch to a different type of coal. At present only two units of the Maritsa Iztok 2 plant have desulphurisation facilities which, according to energy ministry data, reduce the harmful emissions by over 92%. Japan's Mitsui will install such facilities at units One through Four within a rehab program that it is implementing. The program is to be completed by 2007 reducing the CO2 emissions 15-fold. The SO2 emissions are expected to be 94% less as of 2008, when desulphurisation facilities will be put up at Units Five and Six.
Source: Dnevnik (16.08.2004)

Italy's Enel is interested in building another 600MW capacity on the site of thermal power plant (TPP) Maritsa Iztok 3 if a project by the U.S.-registered AES for the construction of an identical unit at thermal power plant Maritsa Iztok 1 is turned down, said Enel manager for the Balkans Enrico Viale. Enel is currently conducting a rehab project at the Maritsa Iztok 3 plant. According to unofficial information, it has reached an agreement with Japan's Mitsui under which the latter will supply the equipment for the new plant. The Japanese company has rehabilitated four units of TPP Maritsa Iztok 2. 'We are willing to build another two units with a combined capacity of 600MW to the total worth of 900 mln levs at Maritsa Iztok 3,' said Viale. Maritsa Iztok is owned by Energiyna Kompaniya Maritsa Iztok 3 where ownership is split between the Maritsa Iztok Power Holdings with 73% and the National Electricity Transmission Company. Enel holds 60% of Maritsa Iztok 3 Power Holdings, the remainder is controlled by U.S.-registered Entergy. Enel also said it will invest 440 mln levs in new equipment for Maritsa Iztok 3 by the end of this year, and plans to put in the plant another 220 mln levs next year. The company also said that it has awarded to local subcontractors 75 mln levs in supplies, creating 1,000 jobs. The first rehabilitated unit at Maritsa Iztok 3 is expected to go into operation in the first three months of next year. The whole project should be completed by 2006, expanding the plant's capacity to 904MW and bringing its annual output to 5 bln kWh. Two desulphurisation installations will curb emissions by 90%. A closed water-use cycle will be introduced saving 35% of the water used in manufacturing. Enel is also interested in acquiring a gas distributor licence for the Trakia region and in bidding for the privatisation of the TPPs based in Varna, Rousse and Bobov Dol.
Source: Dnevnik (09.12.2004)

Assarel-Medet, the copper mining and processing company, non-ferrous smelter KCM, the Maritsa Iztok mining complex and copper smelter Elatsite Med have clinched direct electricity purchase deals with thermal power plant (TPP) Maritsa 3-Dimitrovgrad, TPP Maritsa Iztok 2 and nuclear power plant (NPP) Kozloduy, shows the register of the participants in the deregulated segment of Bulgaria's electricity market. The latest bout of deals brings to five the number of power consumers buying their electricity directly from the producers. The price parameters of the deals were not disclosed. Umicore Med, the Pirdop-based local unit of Belgian metals and materials group Umicore, became in mid-September Bulgaria's first power consumer to sign a direct electricity purchase contract after reaching a 291 gWh deal with NPP Kozloduy. The contract expires at the end of 2004 but is likely to be extended. Each of the five eligible power guzzlers has an annual consumption exceeding 100 gWh and no unpaid electricity bills. The Maritsa Iztok mines will purchase 515 gWh of electricity from Maritsa Iztok 2. Bulgaria's State Energy Regulatory Commission has specify the quantities of electricity that NPP Kozloduy, Maritsa 3-Dimitrovgrad, Maritsa Iztok 2 and the TPPs in Varna and Bobov Dol are allowed to sell to eligible consumers at negotiable prices. TPP Maritsa Iztok 3 is not allowed to sell on the deregulated segment, estimated at 150 mln euro in 2004, on account of its 15-year with national transmission system operator NETC which will take effect after Italy's Enel and Entergy of the U.S. complete the rehabilitation of the company. Another 70 local companies with a power intake of over 20 gWh will be granted the status of eligible consumers in 2005. Bulgaria's energy market will fully open to competition in 2007.
Source: Dnevnik (10.12.2004)