This year, the domestic electricity market will be opened for bigger consumers with annual consumption of over 100 mln kWh and for such consuming over 40 mln kWh, NEC announced. This will allow the companies, considered privileged consumers to negotiate their electricity supplies directly with the central producers at the free zones. So far, this right has been given by the State Energy Regulation Commission only to the ten biggest Bulgarian enterprises – Mines Maritza Iztok, Stomana Industry, KCM – Plovdiv, Asarel-Medet, Elatsite Med, Umicore Med, Devnya Cement, LUKoil-Neftochim, Agropolichim and Neochim. The electricity market was due to be opened for them as early as 2003, and in 2004 it had to be opened for companies consuming over 40 mln kWh annually. In 2003, the liberalization with around 18 per cent was not implemented due to the delayed adoption of the new Energy Law. The decree under it, regulating the new market relationships, is due to enter into force in February, after which the two steps of the liberalization will be merged, experts explained. Big clients’ electricity expenses are expected to drop with around 8 per cent, which will create additional stimuli for economic growth, Minister of Energy and Energy Resource Milko Kovachev stated. During the first step of the opening of the market, no amounts for direct sale will be released from NPP Kozloduy. Another company, which remains out of the list of centrals, is TPS Maritza Iztok 3, which has a long-term contract with NEC. All the other producers may take part in the free market. The condensation stations will have a partially liberalized quota, which will be sufficient to cover over 150 per cent of the expected maximum consumption of the privileged consumers. The heating, plant and private water power stations will have the right to sell the electricity they produce directly. NEC will be an operator of the transportation system and will guarantee the balance between production and consumption. Since May 2003, NEC, the consumers and the stations are trying different market situations in the form of virtual simulation. The drills will not stop until the decree is adopted. The plans of the participants in the drills are to turn these virtual drills into actual work. The price of the electricity under the direct contracts will not be regulated by the State Energy Regulation Commission. No fees for available capacity will be paid for the free segment.
Source: Pari (05.01.2004)

Mines Maritza Iztok received a certificate giving it access to the national railway infrastructure for a period of 5 years, the company’s press service announced yesterday. The document was issued tby the National Research Institute of Transport and guarantees the safety of railway transport in the East-Maritza coal complex. The certificate also allows the company to apply for a license to provide railway services using the national network.
Source: Monitor (02.02.2004)

The average insurance in the 20 most loyal companies insuring a staff to 15 employees is BGN 908, the National Social Security Institute’s information showed. Over 264 people work in these companies. The companies with a staff of 100 to 250 people employ a total of 4127. The average insurance income there is BGN 726. Top 20 of the most loyal employers in these criteria includes the names of Sheraton ­ Sofia-Balkan, publishing house 168 Hours, Mines Maritsa Iztok, Moto Pfoe, Bulgartabac Holding, etc.
Source: Cash (06.02.2004)

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)

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)

National Social Security Institute – Sofia announced the 20 most honest employers with 100 up to 250 people staff for the first quarter of 2004, securing 4 076 people with average security income of BGN 674: 1. Amylum Bulgaria SPJSC – Razgrad 2. Willi Betz GmbH & Co. KG - Balkan Star – Branch – Sofia 3. Bulgartabac Holding JSC – Sofia 4. Mines Maritsa Iztok SPJSC – Radnevo 5. Polichrom POAP JSC – Sofia 6. Bulgargas – Stara Zagora 7. Festo Production SPLtd. – Sofia 8. Unionbank JSC – Sofia 9. Communications Regulation Commission – Sofia 10. Informational Technologies in Communications Center – Sofia 11. New Television - First Private Channel SPJSC – Sofia 12. Bulgaria Net JSC – Sofia 13. Piccadily Holding LTD – Sofia 14. Electricity Distribution Company Pleven SPJSC – Vidin Branch – Vidin 15. Research Institute of Communications – Sofia 16. DZI - General Insurance JSC – Sofia 17. Neftochimproject – Bourgas 18. Bourgas Free University – Bourgas 19. High Voltage Networks – Electricity Transmission Region Gorna Oryahovitza – Gorna Oryahovitza 20. Heat Supply-Pleven SPJSC – Pleve
Source: Other (08.06.2004)

National Social Security Institute published a list of the 20 “most upright employers having staff of over 250 people” for the first quarter of 2004. These 20 companies provide work for a total of 50391 people. The average social security income in these enterprises is BGN 621. 1. NPP KOZLODUY – KOZLODUY 2. LUKOIL NEFTOCHIM BOURGAS – BOURGAS 3. MINES MARITZA-IZTOK SP JSC – BRANCH PIT TROYANOVO-SEVER – village of KOVACHEVO 4. MINES MARITZA-IZTOK SP JSC – BRANCH PIT TROYANOVO – 1 – village of TROYANOVO 5. VIDIMA SEVLIEVO 6. STATE-OWNED COMPANY “AIR TRAFFIC DIRECTION” – SOFIA 7. MOBILTEL – SOFIA 8. TECHNOLOGICAL REGION OF LONG-DISTANCE COMMUNICATIONS “STTS” – SOFIA 9. BLAGOEVGRAD-BT JSC – BLAGOEVGRAD 10. MINES MARITZA-IZTOK JSC – BRANCH GROOVE TROANOVO-3 – village of MEDNIKAROVO 11. BULBANK – SOFIA 12. UNIVERSITY MULTI-PROFILE HOSPITAL FOR ACTIVE TREATMENT “ST. GEORGE” – PLOVDIV 13. TOPLOFIKATZIA SOFIA – SOFIA 14. ELATZITE-MED – village of MIRKOVO 15. STOMANA INDUSTRY – PERNIK 16. VAZOV’S MACHINE PLANTS (VMZ) – SOPOT 17. TPP MARITZA-IZTOK 2 –village of KOVACHEVO 18. BALKANPHARMA-DUPNITZA – DUPNITZA 19. PORT VARNA – VARNA 20. UMICORE MED - PIRDOP
Source: Other (08.06.2004)

National Social Security Institute announced the Top 20 most law-abiding employers with personnel between 100 and 250 for the first half of 2004. The Top 20 companies insure a total of 4057 people with an average insurance income of BGN 778. 1. Media Holding - Sofia 2. 168 Hours SPLTD - Sofia 3. Mines Maritsa Iztok SPJSC - Radnevo 4. Sap Labs Bulgaria SPLTD - Sofia 7 Avtomotor Corporation - Sofia 13. Siemens Information and Communication, Sofia 18. Festo Production SPLTD - Sofia
Source: Other (10.08.2004)

The National Social Security Institute announced the Top 20 most law-abiding employers with personnel over 250 emplooyees for the first half of 2004. The Top 20 companies insure a total of 51,560 people with an average insurance income of BGN 622: 1. Lukoil-Neftochim JSC - Bourgas 2. Nuclear Power Plant Kozloduy SPJSC - Kozloduy 3. Mines Maritsa-Iztok SPJSC - Branch Troyanovo-North Pit, village of Kovachevo 15. Elatsite-Med JSC - village of Mirkovo 17. Mines Bobov Dol SPJSC - Bobov dol 19. Thermo-electric power station Maritsa-iztok-2 SPJSC - village of Kovachevo
Source: Other (10.08.2004)

Mines Maritza Iztok has transferred its receivables from Brikel to Corporate Bank. The only briquette plant in Bulgaria, which was recently bought by the businessman Mr. Hristo Kovachki, owes a total of BGN 41 mln to its workers. According to the preliminary agreements, the debt should be reduced to BGN 19 mln by the end of this year.
Source: Sega (12.08.2004)

The profit of Maritsa East Mines since the beginning of the year came to BGN 7.0 million, according to data provided by the company's management. Maritsa East has extracted 12 million tonnes of coal, 62% of which went for energy production in the thermal power plant Maritsa East 2. The cost of a tonne of coal was reduced by 4.5% and its selling price is BGN 12.20. Maritsa East has lodged a notice to Kalisto, the new owner of Brikel, that it would stop the coal supplies to it due to uncovered current liabilities. Up to now, Brikel owes BGN 41 million to Maritsa East. Brikel deals with production of electricity and heating, transit and distribution of heating, production and sale of briquettes.
Source: Pari (13.08.2004)

After the successful ending of the privatization of Bulgaria’s electricity distribution companies, the long-awaited liberalization of local energy market is expected to commence as well. At least this is what the State Energy Regulation Commission (SERC) promised. The liberalization of the energy market was supposed to happen in July this year, but it turned out in the last minute that it would be delayed again due to the unpreparedness of the sub-normative regulations. According to SERC’s chair Mr. Konstantin Shushulov, the commission is already almost ready with the procedures related to the market liberalization. Officially, the right of privileged consumers (companies with an annual consumption of over 40 gWh of electricity) to freely negotiate electricity supplies with power plants will most probably be given in this year’s last quarter. Along with the market liberalization new players will also be admitted, the so-called electricity traders. They will practically compete with electricity distribution companies, because they will also have the right to deliver electricity to consumers at free prices. This category of market players will be introduced through the new Law on Energy and Energy Resources. The idea is to separate trade of electricity from distribution in parallel with the market liberalization. According to Mr. Konstantin Shushulov, there are already 4-5 private companies which have demonstrated interest, though still not officially, in acquiring licenses to operate such trade activity. The so-called electricity traders will have the right to negotiate with consumers electricity supplies from power plants at prices, which are free, i.e. not regulated by SERC. In order to implement their activity, companies will have to obtain licenses from the regulation commission, which will be given to them in case they meet certain criteria, which, however, have not been determined as yet. Initially, traders will be granted the right to supply electricity only to the privileged consumers (currently around 10 big industrial enterprises). The idea is that traders should be able to supply electricity to these enterprises at lower prices, by negotiating on cheaper supplies with the owners of the power plants. When these mediators appear on the market, privileged consumer will be able to chose whether to use the services of the private trading companies, as long as they are offered better prices, or to negotiate their supplies themselves, by paying only the transmission fees. When household consumer electricity prices are also liberalized, which should happen before the year 2007, they will also be able to use the services of the so-called electricity traders. According to the energy market liberalization scenario, in the first stage of this liberalization the companies Agropolychim, Assarel Medet, Devnya Cement, Elatzite Med, KCM, Mines Maritza Iztok, Neochim, Sviloza, Stomana Industry, and Umicore Med, in their position of privileged consumers, should be given the right to directly negotiate prices and volumes of electricity with TPP Maritza Iztok 2, TPP Varna, TPP Bobov Dol, and TPP Rousse. All four power plants have certain quotas for free electricity negotiation at lower consumer prices. The privileged consumers themselves will pay for the transmission either to the National Electricity Transmission Company, or the electricity distribution companies, depending on the network they use. NETC is owner of the high-voltage network, while the electricity distribution companies own the low-voltage distribution lines. Following the complete opening of the market, electricity transmission should gradually be separated from trade, which means that at one point the electricity distribution companies will only deal with electricity distribution. According to Mr. Konstantin Shushulov, the new owners of the electricity distribution companies are familiar with this scheme and are informed about the possibility of future competition on the domestic market as early as next year. A similar market scheme is actually applied in most European countries. If the scheme should be successful, local traders will have to offer consumers electricity at prices, lower than those offered by the electricity distribution companies, as well as to buy cheaper from production plants. At first sight, the expectation, that consumers will be able to buy cheaper electricity, by using the services of mediators, and not by negotiating with suppliers directly, seems illogical. According to SERC’s head Mr. Konstantin Shushulov, however, lower priced supplies are absolutely possible because the prices of this type of supplies won’t include the constant expenditures, which are currently included by local energy companies and plants in their selling price. These expenditures include operational costs, maintenance costs, etc. “Mediator supply price will only include the variable expenditures of the energy companies (for materials), besides, the companies themselves will be able to negotiate with the plants on lower prices”, Mr. Shushulov explained. Electricity traders will only have to pay transmission fees to the NETC or to the electricity distribution companies. Currently, the amount of these fees is determined by the SERC for each company separately, and this is made following their proposal. NETC’s transmission fee is in the amount of BGN 11.80/mW, while the fees applied by the electricity distribution companies vary between BGN 6.68 and BGN 10.22/mW.
Source: Capital (21.08.2004)

National Electricity Distribution Company (NEC) covered 78 percent of the electricity shortage in the region, the Minister of Energy Mr. Milko Kovachev said in Radnevo yesterday. It was expected a total of 6 billion kilowatts of electricity to be exported by the end of the year. According to Mr. Kovachev, Mines Maritsa Iztok were most likely to remain state property until the end of the Government’s term. The Sweden-based state-owned company Vatensal has also shown interest in the three mines but negotiations have not started yet.
Source: Sega (01.09.2004)

Electric power exchange market is expected to be set up in 2005, Minister of Energy and Energy Resources Mr. Milko Kovachev said. Initially, only the biggest consumers of electricity in Bulgaria will take part in it. They will negotiate on the prices directly with the producers, which will provide the transparency of the deals. Each one of the Balkan countries is to establish its own energy exchange market – Romania, Greece, and Bulgaria, Mr. Kovachev explained. Currently, an intergovernment memorandum is being prepared, which will specify the rules of electricity trade. The document will be ready by the end of the year.
Source: Standart (20.09.2004)

Stomana Industry will be next Bulgaria enterprise to sign a contract for liberalized purchase of electric power. The company is owned by the Greek group Viohalco. Some of the other companies which will be given the opportunity to do that are Assarel Medet and Mines Maritza Iztok, which are currently in a process of negotiations, Mr. Yordan Kostadinov, executive director of NPP Kozloduy said yesterday. On Friday evening the nuclear plant signed a contract for liberlized sale of power electricity with Umicore Med. The price in this deal is commercial secret, but it is at least 15 per cent lower than the one at which Umicore was previously forced to buy electricity from the National Electricity Transmission Company (NEC), Mr. Thomas Beamish – CEO of the copper plant revealed. Currently, all enterpises, consuming at least 40 000 mWh of electricity annually have the right to liberally purchase electricity. Next year, this right will also be given to clients consuming 20 000 mWh, in 2006- 9000, and in 2007 – all non-household consumers. Meanwhile, it became clear yesterday that the transmission fee, paid to NEC in such cases, will be changed. Currently, it is in the amount of BGN 11.80 per 1mWh of transmitted electric power. By the end of this year, it will be fixed depending on the distance. This promise resulted in the signing of the first contract for liberalized electricity sale, a source from the State Energy Regulation Commission said. The first amounts of electricity, sold at liberalized prices, were supplied last Thursday at 14:55 p.m. The supply schedule, which is a part of the contract, provides for updating each 168 hours. If the amounts negotiated for the week are not bought up, the buying enterprise should pay the remaining amount at a price of BGN 0.075/kWh. This is a punitive tariff, which means that the actual price under the contract is at least twice as low.
Source: Sega (20.09.2004)

Umicore Med, the Pirdop-based local unit of Belgian metals and materials group Umicore, became Bulgaria's first power consumer to sign a direct electricity purchase contract last week after clinching a deal with the Kozloduy nuclear power plant (NPP), energy minister Milko Kovachev said. The contract, which expires at the end of 2004 but is likely to be extended, further the liberalisation of Bulgaria's power market (estimated at 170 mln euro in 2004), the official said. The concrete parameters of the deal were withheld due to a confidentiality policy but NPP executive director Yordan Kostadinov said the tariff at which the plant will be selling electricity to Umicore is higher Umicore, whose 2003 power intake was 291gWh, was one of the 15 local power guzzlers with annual consumption exceeding 100gWh who made the list of consumers eligible for direct energy supply deals. Local smelter Asarel Medet and steel company Stomana Industry are also pursuing direct power purchases deals with Kozloduy. In June, Bulgaria's power industry regulator assigned NPP Kozloduy a 200MW quota which it is allowed to sell to eligible customers at negotiable prices. Bulgaria intends to open to competition up to 60% of its energy market by 2007 and to grant household customers the choice of power supplier while eligible industrial consumers will be allowed to import electricity. The National Electricity Transmission Company has already registered the Maritsa Iztok mining company, Asarel Medet and Stomana Industry as the next industrial consumers that will promptly complete the negotiations for direct power supply deals with the Varna, Bobov Dol, Rousse and Maritsa Iztok 2 thermal power plants.
Source: Dnevnik (20.09.2004)

Bulgaria’s minister of energy and energy resources opened the tenth session of the Power Engineering working group with the Bulgarian-German Cooperation Council, which is currently held in Berlin, and enjoys the interest of major German energy companies, such as Siemens, Framatom, ABB, Alstom, etc. Minister Kovachev is accompanied by representatives of the energy ministry, the energy efficiency agency, as well as by the executive directors of the National Electricity Transmission Company (NEC) – Mr. Vasil Anastasov, Bulgargas – Mr. Kiril Gegov, Maritza Iztok mines – Mr. Shteryo Shterev, TPP Varna – Mr. Kamen Boshnakov.
Source: BTA (26.10.2004)

Bulgaria’s National Electricity Transmission Company (NEC) has sold abroad electricity for over EUR 200 mln y/d, minister of energy and energy resources Mr. Milko Kovachev announced. The company has signed contracts for sale of another 6 bln kWh in 2005. Turkey is not among the export destinations. Bulgaria is exporting electricity to Greece, Serbia, Macedonia, Albania, and Italy.
Source: Sega (02.11.2004)

Top 50 of the most loyal employers with a staff from 100 to 250 people insuring a total of 9580 people, and with an average insurance income of BGN 608 for the first nine months of 2004: 1. Mines Maritsa-Iztok - Radnevo 2. Bulgartabac Holding - Sofia 3. Commercial Bank Unionbank JSC - Sofia 4. Kronospan Bulgaria - Bourgas 15. Delta Bulgaria - Sofia 25. Datecs, Sofia 26. Transimpex - Sofia 31. Toplofikacia - Sliven 33. Curtis-Balkan SPLTD - Sofia 34. Electrorazpredelenie - Gorna Oryahovitza, Silistra branch 36. Intersnack Bulgaria SPLTD - Sofia 39. Kremikovtzi Trade SPLTD - Sofia 49. Melexis Bulgaria - Sofia
Source: Capital market (08.11.2004)

The National Social Security Institute (NOI) published a list of Bulgaria's 50 "most correct employers with a staff of over 250 people for the first nine months of 2004, providing work for a total of 98 555 people with an average social security income of BGN 514: 1. Nuclear Power Plant Kozloduy SPJSC - Kozloduy 2. Lukoil-Neftochim JSC - Bourgas 3. Mines Maritsa-Iztok SPJSC - Branch Troyanovo-North Pit, village of Kovachevo 9. Elatsite-Med JSC - village of Mirkovo 14. Thermo-electric power station Maritsa-iztok-2 SPJSC - village of Kovachevo 18. Port Varna 22. Pirintex Production - Gotze Delchev 24.SKGT Electrotransport, Sofia 25. Solvay Sodi - Devnya 36. Water Supply and Sewerage, Varna 39. Remotex SPJSC - Radnevo 44. Arkus - Lyaskovetz
Source: Capital market (08.11.2004)

Mines Maritza-Iztok reported BGN 200 mln sales revenues this year. Total revenues hit BGN 212 mln, which represents a BGN 876 000 increase y/y. So far, the company has paid taxes in the amount of BGN 52 097 000, and is planning to distribute BGN 10 713 as dividends.
Source: Sega (22.11.2004)

The Bulgarian energy sector needs EUR 6.6 billion investments until 2007, calculations of the energy ministry show. The funding is needed for reconstruction, expansion of existing capacities and construction of new ones. As much as EUR 4.14 billion of the total amount will be used for reconstruction, modernisation and rehabilitation and for expansion of the National Electric Company's transit network. Another EUR 2 billion will be invested in boosting Bulgargas's gas transit network and in surveys needed for the Nabucco project for transit of Caspian gas via Bulgaria. Some EUR 331 million will be alloted for rehabilitation of the heating network and construction of combined capacities for heating and electricity. In coal mining, as much as EUR 125 million in needed for the upgrade of the Maritsa Iztok Mines alone.
Source: Pari (01.12.2004)

Mines Maritsa Iztok bought 1400 decares of land for the discovery of new coal layers during the year for the company’s three mines, the director Mr. Shterio Shterev announced. The expropriating procedures are related with a number of problems. After the property status change from private into state one, independent experts estimate the lands, and the company buys them at a market price.
Source: Sega (03.12.2004)

Stara Zagora District Court registered the following change for Mines Maritsa Iztok SPJSC: Mr. Ivan Valchanov Markov was elected member of the board of directors.
Source: State Gazette (07.12.2004)

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)

Bulgaria's Maritsa Iztok Mines is planning BGN 210 million investment in the next two years. As much as BGN 160 million will be own funding, the remainder will be taken as credit, executive director Shteryo Shterev said. Next year investment will amount to some BGN 80 million, twice as much as this year's. However, the size will depend to a large extent on the construction of a replacing capacity, he added.
Source: Pari (13.12.2004)

The letter of the US company AES in support of the project for the building of a new 670 mW capacity in TPP Maritza Iztok 1 was not adopted by the government during its last session, government sources announced. The US company was asked to present the letter to the banks which will finance the project, which has been postponed for five years for different reasons. Minister decided to return the document to the energy ministry, because it was written in the form of a contract. The letter also included an arbitrage clause, according to which the investor was allowed to settle arguments with the Bulgarian party abroad.
Source: Dnevnik (28.12.2004)