Two investors willing to buy Bulgaria’s Belene NPP A foreign investor sent a letter to Bulgarian Council of Ministers expressing his desire to buy Belene NPP. The investor is not from Russia and has declared that he does not require state guarantees for financial resources that will be invested in the project. The government should invite the investor after his business and capital is examined. Chairman of ABV party said that there was a second potential investor in Belene NPP who was from the USA.
Source: Standart (08.01.2015)

Bulgaria govt considering partial privatisation of BEH once again The idea for part of the shares of the Bulgarian Energy Holding (BEH) and its subsidiaries to be sold on the BSE – Sofia has returned to the agenda. This is one of the mid-term measures to stabilise the energy field, it transpires from a paper worked out by the Energy Ministry. The idea to sell part of BEH on BSE is not new. It was put forward for discussion for the first time in end-2011 during the first government of the Citizens for European Development of Bulgaria (CEDB). Initial plans envisaged the sale of 15% of BEH via the BSE or an international market or offering packages of 20 – 25% to the Electricity System Operator (ESO) and the gas operator Bulgartransgaz alone. Afterwards it transpired that the government intends to seek a strategic investor for the energy holding, which was supposed to happen until end-2012. In the end, in October 2013 the BEH issued a bond emission of EUR 500 million with a coupon of 4.25%.
Source: Capital (09.01.2015)

Brussels gives green light for Bulgaria's gas hub project Bulgaria received a "green light" from Brussels for the construction of a gas hub in the country. This became clear after a series of talks between Prime Minister Boyko Borisov with European Commission Vice-President Maros Sefcovic, responsible for Energy Union. The leading EU politician expressed his strong support for the creation of gas hubs, which may play an important role in the development of regional gas markets. Boyko Borisov presented the idea of constructing a shared hub for Russian gas in Bulgaria in order to avoid the legal complications of the cancelled South Stream pipeline. Then, the EU members could get their gas from that hub, planned near Varna. The possibility of financing the strategic project was also discussed during the meeting. For this purpose, using the existing mechanism for EU financial support could ensure a rapid implementation of the project. Such gas hub can supply Central and Western Europe as well as countries of the European Energy Community, a statement from the European Commission stated.
Source: Standart (13.01.2015)

Bulgaria's Mini Maritsa Iztok sees 2014 profit at 2.6 mln euro Bulgarian mining complex Mini Maritsa Iztok expects a profit of about BGN 5 million in 2014. The miner's investment programme for last year was only 61% fulfilled due to lack of rhythmical finances, while 82% of its upgrade programme was realised, Mini Maritsa Iztok said in a notice published on its website. Its 2014 coal output exceeded 27.5 million tonnes, which is 428,000 tonnes more than projected in the company's business plan. The mines of the Mini Maritsa Iztok complex excavated and transported nearly 81.22 million cm of earth in 2014. The mining complex, located in southern Bulgaria, is 100%-owned by state-operated Bulgarian Energy Holding.
Source: Capital (14.01.2015)

Bulgaria plans to award offshore oil, gas exploration contract by end-Aug Bulgaria expects to select a contractor for oil and natural gas exploration in blocks 1-14 Silistar and 1-22 Teres in the continental shelf and the country's exclusive economic zone in the Black Sea by the end of August. The tenders for the exploration of the two blocks have already begun. Hopes are by the middle of the year, July-August at the latest, procedure to be completed and a company to be successfully selected. There is a prospect of having oil and natural gas at the two blocks. In December last year, the Bulgarian government said it plans to open tenders for exploration in the two blocks, granting five-year permits. At the time, it said potential investors will have to pay an annual fee of BGN 275, for the Silistar block, which covers an area of 6,893 sq km, while for the Teres block, with an area of 4,032 sq km, the annual fee is set at BGN 161,280. In the 2002-2007 period, US-based Vintage Petroleum International conducted limited exploration in the two blocks in compliance with a permit it had been granted. In 2013, the government cancelled a tender to grant a permit for oil and gas exploration in the 1-22 Teres block after it failed to attract any bidders.
Source: Capital (21.01.2015)

Life Extension of Units 5, 6 of Kozloduy NPP Proceeds as Planned- Watchdog Chair The life extension of units 5 and 6 of the Kozloduy nuclear power plant proceeds according to plan, according to Lachezar Kostov, Chair of the Bulgarian Nuclear Regulatory Agency (BNRA). Kostov informed that the BNRA had received all necessary documents for the procedure by November 2014 and had approved the life extension of the two N-plant units. He said that parallel to that Worley Parsons was estimating whether the recommended measures were sufficient. Kostov noted that the contract with the consultant was worth around BGN 150 000. He made clear that Worley Parsons was expected to present its evaluation of the program by April 2015, adding that the life extension plans for the two N-plant units could include additional measures. Kostov said that the Kozloduy NPP could launch the implementation of the plan approved by the BNRA immediately. Borislav Stanimirov, Deputy Chair of BNRA, claimed that the life extension of the two N-plant units was a a purely technical question and there was no politics involved.
Source: Standart (22.01.2015)

Bulgaria's Promodul to invest about 1.7 mln euro in canning plant Bulgarian fuel station maker Promodul will expand its activities and will invest between 2.5 million levs ($1.5 million/1.3 million euro) and 3 million levs in a plant for conservation of fruit and vegetables in the city of Pavlikeni, the company's owner and manager said on Friday. The company will renovate an existing non-operational plant and will start processing, storing, canning and freezing fruit and vegetables, Ivan Ivanov told SeeNews over the phone. “[The investment] can be even bigger as I have not calculated the technological process and how much equipment I will need,“ he said, adding that there are some details that need to be taken into account before calculating the overall investment in the new plant. The core activities of the company are the production and equipment of gas stations. Ivanov said he bought the 1.35 ha property on which the plant lies, and which was used in the past for fruit and vegetables conservation, and decided to use it for the same purpose. The plant itself takes up an area of about 3,000 sq m. “[I Intend to use] my own funds and [funds from] banks, with which I work, and to apply [for financing] under European projects,” Ivanov noted. According to the owner, reconstruction works on the building have been completed, but the plant is not expected to start operating within the next year because the project is still at the draft phase and a lot more needs to be done. The total capacity of the plant has not been determined yet, but expectations are that it would be about 2 tonnes of canned fruits and vegetable per day. “The capacity is a little difficult for me [to determine], as I am in the process of defining the technology itself and I have to consider the property that we have, since production is more specific in terms of freezing – we need refrigerators and so on,” Promodul's owner and manager noted. The plant is expected to create about 25 jobs. Promodul asked earlier this year the Pavlikeni municipality for an assessment on whether the project needs an environmental impact assessment (EIA), data published on the municipality's website indicated. The document showed that the company intends to design a plan for the project and launch construction works in 2015 while within a period of 24 months the plant should be operational. Promodul, based in Pavlikeni, was set up in March 2012. It is 100%-owned by Ivanov. Pavlikeni, part of the Veliko Tarnovo area, is located in Northern Bulgaria. The company posted a profit of 178,000 levs in 2013, up by 5.3% compared to the previous year. Its net sales grew by an annual 50.6% to 839,000 levs in 2013.
Source: Capital (24.01.2015)

Project Company South Stream Bulgaria AD Is Still Operational - CEO South Stream Bulgaria AD, the company in charge of the implementation of the South Stream gas pipeline on Bulgarian territory, keeps functioning, according to Dimitar Gogov, CEO of the company. In a Friday interview for the Bulgarian National Television, Gogov underscored that there was no official document indicating that the gas pipeline project had been suspended and therefore South Stream Bulgaria AD was still operational. Govov, as cited by dnevnik.bg, pointed out that a number of procedures were underway that could not be stopped. Asked to specify where the money was coming from, he said that the shareholders were providing the financing. Gogov refused to comment on allegations distributed by various media outlets of the average wage at the company amounting to BGN 10 000. South Stream Bulgaria AD was incorporated in 2010 over the implementation of the Bulgarian section of the South Stream gas pipeline. Shareholders in the company are the Bulgarian Energy Holding (BEH) and OAO Gazprom, each with a 50% share.
Source: vesti.bg (24.01.2015)

Bulgaria's State Electricity Co 'Sells Energy Below Market Prices' State-owned National Electricity Company (NEK) is suffering losses worth millions of BGN due to "lobbyist" legislation amendments and a practice to sell electricity below market prices, a Bulgarian MP has claimed. In December 2014, NEK sold some 650 MW of energy, nearly 50% of Bulgaria's total annual export, at BGN 70-71 per MW, which is ten percent below market princes. Kadiev's estimates suggest NEK is running a BGN 30 M loss just from these activities. amendments to the Energy Act are forthcoming which include changes a "liabilities to society" tax of BGN 15/MW/h. The latter levy replaced in August the "green energy" tax introduced by the previous elected socialist-liberal government that was revoked by the Constitutional court in end-July. Kadiev alleged that the "lobbyist" amendment envisaged a cap on the new tax which would benefit bigger industrial consumers of energy, with the move depriving NEK of nearly BGN 40 M in revenues. "The loss... will be dispersed among households and will increase consumer [electricity] bills by BGN 1 a month," he argued. Electricity bills are set to go up in the next years, as energy watchdog officials maintain. At the same time NEK is actively exploring measures to tackle its massive debt worth about BGN 3 B (in an economy of about BGN 80 M), according to government estimates.
Source: Dnevnik (26.01.2015)

Bulgarian energy market’s capital increased by BGN 350 thousand In the spring of 2014 the energy authority issued license for organization of stock market of a specially founded company under the name of Independent Bulgarian Energy Exchange SPJSC, which is entirely controlled by Bulgarian energy holding. The aim is in that way companies of the energy sector to have bigger choice for distribution of electric energy. In the beginning of December its capital was increased from BGN 50 to BGN 400 thousand. The move was made so that the enterprise provide for its activity. It is also in line with Independent Bulgarian Energy Exchange’s investment programme and Bulgarian law. According to the company’s business plan for 2014 it should have generated revenues to the amount of BGN 422 thousand from sale of slightly over 4 million megawatt hours. This is 9% of the total quantity of produced energy in the country, which in fact never happened. Independent Bulgarian Energy Exchange’s investment programme envisaged that last year the company should have invested BGN 717 thousand. The biggest part of the money was set aside for purchase of MMS platform. It is used for trade and its purchase was assessed to BGN 613 thousand. In 2016 the second stage of the programme is due. It is connected with significant expenses. Then Independent Bulgarian Energy Exchange plans to start the process of merging with regional energy markets.
Source: Capital (26.01.2015)

Stalled South Stream remains a priority in the government program Continuing the construction of the South Stream Project only in full compliance with EU legislation, in a dialogue with the European Commission and if the economic benefits are proved. The Government plans a number of measures for energy efficiency, financial stabilization of the sector and development of new projects. In this sphere, the Cabinet prioritizes support for and participation in the establishment of a European Energy Union. The Energy Ministry and the Council of Ministers are tasked with developing and adopting an energy strategy for the period ending in 2030 and, in the longer term, until 2050, and a National Energy Efficiency Strategy. The Government argues for the need to keep the development capacity of the nuclear power industry, to extend the service life of Kozloduy N-Plant Units 5 and 6, and to develop new economically effective nuclear power projects without reliance on State aid. There are plans to elect a new complement of the State Energy and Water Regulatory Commission on the basis of principles guaranteeing its political independence, to amend the Energy Act so as to safeguard the interests of Bulgarian household and business electricity customers in a fair price of electricity, to take actions for the financial rehabilitation of the National Electric Company (NEK). The Cabinet also plans to implement a large-scale national programme for energy renovation of multi-family residential buildings, which would cover 50 per cent of them within two years. The Programme envisages liberalization of the energy market, an acceleration of oil and gas exploration and prospecting, including in the Black Sea, while complying with the National Assembly resolution that banned use of the hydraulic fracturing method. http://offnews.bg
Source: Other (26.01.2015)

Slovakia Proposes Gas Interconnection to Romania and Bulgaria Slovakia's gas pipeline operator Eurostream is proposing to Bulgaria and Romania to build an interconnection to reduce their dependence on Russian gas supplies.The proposed 570-km interconnection pipeline would carry gas from Western hubs via Slovakia to Ukraine and then to Romania and Bulgaria, helping to prevent the negative consequences of possible disruptions in Russian gas supplies via Ukraine. A memorandum of understanding on the proposal is expected to be signed with counterparts in Romania and Bulgaria in the next two weeks. A joint venture project worth between EUR 750 M and EUR 1.2 B is now being considered. Under the project, Eurostream will use its existing pipelines to connect to Ukraine's Soyuz pipeline leading to the border with Romania. The proposed interconnection will have a potential capacity of up to 20 billion cubic metres of gas per year.
Source: Presa (30.01.2015)

Bulgargaz appoints new CEO Bulgargaz has appointed a new Chief Executive Officer, announced the Ministry of Energy, BTV reports. Peter Ivanov will be replacing Dafinka Iankova. Iankova became Chief Executive of the gas company in December 2013. Several months before that the post was occupied by Shishman Chaoushev, who had replaced the dismissed Dimitar Gogov. Peter Ivanov has worked at Varna-pro, specializing in the supply of marine equipment and pipeline construction. He also used to be an accountant at the National Electric Company. A few weeks ago Ilian Dukov, son of former MP of GERB Snezhana Dukova, was appointed to the Directors' Board of the company. Botio Velinov, who became a member of the Directors' Board at the end of 2013, will remain one.
Source: Capital (05.02.2015)

From 2016 all electricity to be sold on the Exchange There will be an energy exchange through which will undergo the whole amount of electricity, announced the Chairman of the Parliamentary Committee on Energy and MP Delian Dobrev and added that the stock exchange in Bulgaria will work on the Romanian model. The amendments to the Energy Act (EA), which is currently under discussion, envisages full liberalization of the electricity market in Bulgaria by 2016. According to Dobrev, from the beginning of next year there will be no energy mix sold by the National Energy Company (NEK) but preferential prices and a fund to cover the cost of green energy.
Source: Standart (06.02.2015)

State TPP looks for a loan again After several months ago state thermal power plant Marista East-2 got BGN 15 million bank loan for working capital, it is again in search of new BGN 25 million. The company has announced public tender for overdraft as it is ready to pay for it more than BGN 2 million expenses. Until recently the TPP was obtaining necessary working capital through loans from the closed corporate commercial bank. In the meantime the company announced that it has produced a record quality of electrical energy from the start of 2015. It is assessed to more than 1 billion kilowatt-hours. As a matter of comparison for the entire 2014 the state power plant generated 8, 8 billion kilowatt-hours.
Source: Trud (09.02.2015)

Bulgaria Will Not Launch New N-Plant Units until 2024 – Forecast Bulgaria will not launch new nuclear capacity in the next 10 years, according to a forecast of the Electricity System Operator (ESO). According to state-owned ESO, the Maritsa-Iztok 2 thermal power plant will not need an expansion by units 9 and 10 over the next 10 years. The forecast, as cited by Pressa daily, is part of a draft plan for the development of the electricity network in the period 2015-2024. According to the document, the construction of the Belene nuclear power plant was stopped through decisions of Bulgaria’s government and Parliament. As regards the project for unit 7 of the Kozloduy nuclear power plant, the forecast suggests that it should enter into service after 2025 due to the lengthy conciliation proceedings. ESO also cites a forecast of the European Commission by 2050 under which Bulgaria is expected to unveil new nuclear capacity after 2035. At the same time, the forecast envisages an increase in the capacity of the 1000-MW units 5 and 6 of the Kozloduy NPP by 100 MW through upgrades of the turbines. The Gorna Arda hydro power project will be built to include 3 dams and 3 hydroelectric power plants, with the Byal Izvor hydroelectric power plant scheduled to become operational first, in 2022, with a capacity of 44 MW. One year later, the Ardino HPP is to be launched with a capacity of 56 MW, and in 2024, the Gorna Arda hydro power project is be completed with the launch of the Kitnitsa HPP with a capacity of 66 MW.
Source: econ.bg (09.02.2015)

Bulgaria is building gas hub for EUR 2.2BN The European Commission has frozen the criminal procedures against Bulgaria related to the South Stream, EC Vice President Maros Sefcovic informed today. After the High Level Group on Central and South Eastern Europe Gas Connectivity (CESEC) summit it became clear that Bulgaria may build a gas hub and that the project is now valued at EUR 2.2 billion. "We discussed the criminal proceedings related to the South Stream and we are here to inform you that these procedures will be frozen," Sefcovic. The EC Vice President gave a joint statement with Bulgarian Prime Minister Boyko Borisov after meeting with energy ministers from the EU. Mr Borisov emphasized that the South Stream is not officially terminated to date, as Bulgaria has not received any written document about Russia's decision. "We want to get back to a pragmatic solution to the issue outside the emotions, which would allow good business between the EU and Russia ", Mr Borissov added. The Vice President of the European Commission voiced solidarity with Mr Borisov and added:" We have the impression that communication for such projects should happen through established channels, but in the case that did not happen and so we were surprised. Mr Sefcovic recalled that he initiated a meeting with representatives of all parties involved in the South Stream just a day before Russian President Vladimir Putin announced in Ankara his decision to de-route the South Stream to Turkey. Mr Borisov emphasized that he was ready to negotiate a gas hub from Greece to Russia. "To go somewhere, you first have to be invited. You all know that Vladimir Putin was in Sofia. So why could not I go to Moscow? If he asked me, I am ready to talk," the PM said in response to a question whether he would sit down negotiations with the Russian president.
Source: Standart (10.02.2015)

Balkan gas routes established at the Summit Meeting in Sofia today Nine EU ministers of energy and two commissioners are discussing the route of gas today at the "Boyana" state residence. The first Summit meeting of Southeast European countries on the security of natural gas supply will be attended by power company executives from Austria, Croatia, Greece, Hungary, Italy, Romania, Slovenia, Slovakia and Bulgaria. The forum is also be attended by the Commissioners for Energy and Climate Change Maros Sefcovic and Miguel Canete. Prime Minister Boyko Borisov is familiarizing the experts with the idea of a vertical gas corridor through Greece, Bulgaria, Romania and Hungary, the Standart learned. It will be decided whether to create a gas hub in Bulgaria.
Source: Standart (10.02.2015)

Record coal yield at Mini Maritsa Iztok mines The first month of the year at "Mini Maritsa Iztok" mines ended with a record coal yield, the company reported. More than 3.3 million tons of lignite have been excavated and shipped from the three mines, thereby improving upon the business plan by over 127 percent. The greatest success was at Troianovo-North mine, where the yield was more than 1.2 million tons of coal. The coal excavated and transported from the coal mine Troianovo 3 was a little more than 1 million tons, and in mine Troianovo 1 - over 965,000 tons. The total production of the coal company in January this year is only 2304 tons less than the highest monthly production in the last 20 years, according to official statistics. The record was achieved in October 2013, when the mines had a yield in excess of 3.5 million tons of coal. The business plan of the company for this year entails a yield of 27.35 million tons of coal and mining, transportation and filling of 101.425 million cu. m of land mass, the company said.
Source: Standart (19.02.2015)

US-Owned TPPs Agree to Cut their Electricity Prices Bulgaria's National Electric Company (NEK) has signed memorandums with each of the two US-owned coal-fired electric power plants in the Maritsa Basin, AES Maritza East 1 and ContourGlobal Maritsa East 3, under which the long-term agreements on purchase of the electricity generated by the plants will be renegotiated and its price will be reduced, Energy Minister Temenouzhka told a news conference here on Friday. For its part, NEK guaranteed that it will pay its overdue debts to the two power plants. "We hope that the renegotiation on the terms and conditions for the long-term purchase of the electricity produced by the plants will be finalized by the end of March 2015," Petkova said.
Source: Standart (23.02.2015)

Bulgaria’s Chiren Gas Storage Has Enough Gas for 3 Months Bulgaria’s Chiren underground gas storage contains enough gas to meet the country’s needs for three months with some restrictions, according to a statement of the Energy Ministry. The information was released in response to Tuesday’s escalation of the conflict between Russia and Ukraine over gas supplies and the warning of Gazprom that there could be problems with deliveries to Europe in two days. The Energy Ministry, as cited by dnevnik.bg, assures that the pressure at the entrance of Bulgaria’s gas transmission system is normal at present. The total quantity of gas stored at the Chiren facility is nearly 247 million cubic meters of gas. On Tuesday, Russian energy giant Gazprom warned that it could halt gas supplies to Ukraine, adding that this would most probably cause problems in Europe.
Source: Dnevnik (25.02.2015)

S&P downgrades Bulgaria's NEK to B Standard&Poor's Ratings Services (S&P) lowered Bulgarian power utility National Electricity Company’s (NEK) long-term corporate credit rating to B+ from BB- and has removed it from CreditWatch. The outlook on NEK remains negative, S&P said in a statement last week. “The rating action follows the completion of our review of our assessments of NEK's stand-alone credit profile (SACP) and BEH's group credit profile (GCP), taking into account our expectations for full-year 2014 results and the Bulgarian government's announced reforms to the country's ailing power sector,” the agency said. NEK is a fully-owned subsidiary of state-run Bulgarian Energy Holding (BEH).
Source: Capital (06.03.2015)

Bankrupt Fertilizer Plant Chimco AD Fails to Attract Bidders in Second Tender No candidates to buy the bankrupt Vratsa-based fertilizer plant Chimco AD, also known as Himko AD, showed up in the second open tender. The price tag, at BGN 22.8 M, had been reduced by slightly over BGN 6 M from the previous tender held in 2014, according to reports of the Bulgarian Telegraph Agency. The bid increment had been set at BGN 1 M. The liquidator, Rositsa Tomova, announced that the tender had been held valid, despite the fact that no bidders had participated. She made clear that the creditors were to decide on the date of the next tender and the manner in which it would be organized. Tomova informed that the decision was to be taken at a general meeting of creditors to be assigned and to be held at the Vratsa District Court. The largest creditors of Chimco are state-owned gas supplier Bulgargaz, the National Electric Company (NEK), and the National Revenue Agency (NRA). The first tender for the sale of Chimco was held in the spring of 2014 and no participants showed up. Then-Economy Minister Dragomir Stoynev had included Chimco in the plan of the government for the reindustrialization of the Bulgarian economy, the idea being that the state would buy the plant and stabilize it and then sell it to a foreign investor. However, the Economy Ministry did not take part in the first tender as the price was considered to be too high.
Source: Capital (09.03.2015)

European Commission Supports Construction of Bulgaria-Greece Gas Interconnector The construction of a natural gas interconnector between Bulgaria and Greece and the European Commission's support for the project were discussed by Bulgarian Energy Minister Temenouzhka Petkova and European Commission Vice President for the Energy Union Maros Sefcovic, the Energy Ministry reported on Tuesday. The two met during the groundbreaking ceremony for the Trans-Anatolian Gas Pipeline (TANAP), which was held in the eastern Turkish town of Selim. Petkova and Sefcovic considered the Bulgaria-Greece gas interconnector as part of the Southern Gas Corridor. Sefcovic said the European Commission supports the interconnector project because it is important not only for Bulgaria but also for the entire European Union. Petkova said her government has taken all necessary measures to speed up the project. The Bulgarian national budget in 2015 includes an allocation of 80 million euro as a government guarantee for the Bulgaria-Greece interconnector, which is part of the efforts for prompt construction of the pipeline, she said. Bulgaria is working with its Greek partners to accelerate the process even more, Petkova said. offnews
Source: Other (19.03.2015)

Fitch downgrades Bulgarian Energy Holding to 'BB', places on RWN Fitch Ratings said it has downgraded Bulgarian Energy Holding's (BEH) long-term foreign and local currency issuer default ratings (IDR) and its foreign currency senior unsecured rating to 'BB' from 'BB+', and placed the ratings on rating watch negative (RWN). "The rating downgrade reflects a substantial deterioration of BEH group's credit metrics driven by a wider tariff deficit at its subsidiary Natsionalna Elektricheska Kompania EAD (NEK) amid an unfavourable regulatory and market environment," the ratings agency said in a statement on Wednesday. Fitch Ratings also said in its statement: "The RWN reflects the risk of a further rating downgrade if NEK's and BEH group's financial results fail to materially improve in 2015-2016 from weak 2014 preliminary levels. The speed and scale of results improvement depends on the implementation of planned regulatory and legislative changes as well as on NEK's long-term power purchase agreements renegotiation. We expect a deterioration of the BEH group's liquidity in 2015 due to working capital outflow projected by Fitch, which together with capex will result in negative free cash flow (FCF). Based on preliminary numbers for 2014, BEH expects to meet a debt incurrence covenant, as defined in the EUR500m eurobond documentation, albeit with limited headroom. In our view, failure to meet the eurobond covenant resulting in limitation to raise debt would substantially worsen BEH group's liquidity position.
Source: Dnevnik (20.03.2015)

Industrial Energy Consumers in Bulgaria Demand 23% Gas Price Decrease as of April Industrial energy consumers in Bulgaria have called for a 23% reduction in gas prices from April, instead of the 13% price decrease proposed by state-owned gas supplier Bulgargaz. Konstantin Stamenov, Chair of the Management Board of the Bulgarian Federation of Industrial Energy Consumers (BFIEC), argued that gas prices in the region had plummeted as a result of the falling crude oil prices. Stamenov, as cited by the Bulgarian National Radio, noted that the difference between gas prices in Bulgaria, in neighboring countries, and on a global scale made it impossible for the Bulgarian economy to be competitive, to create jobs, and to re-invest. “Prices in two of Bulgaria’s neighboring countries are lower by around BGN 100 per 1000 cubic meters of gas. This is detrimental to energy-intensive industry and instead of attracting investments and retaining the investors who are already here, we shall discourage further decisions for investments and job creation,” Stamenov said. Industrial energy consumers call for an urgent meeting of the Security Council at the Council of Ministers and for the adoption of urgent measures to tackle the threat to the economic security of the country.
Source: Capital (20.03.2015)

EU Ready to Finance Bulgaria-Greece Gas Link, PM Borisov Says Bulgaria’s Prime Minister Boyko Borisov said on Friday he has been assured by EU energy chief Maros Sefcovic that the European Commission will finance the construction of a gas interconnection between Bulgaria and its southern neighghbour Greece. “I believe we’ll be able to build it using European funds,” Borisov told reporters in Brussels following a EU Council meeting. He also said that Bulgarian company Bulgartransgaz has completed preparatory works and is starting the construction of a new gas link with Romania. The interconnection between Bulgaria and its northern neighbour will be able to carry over 30 billion cubic metres of gas in both directions. Commenting on the proposal to build a gas distribution centre in Bulgaria to serve Southeastern Europe and the EU, Borisov said that the idea – now before the European Commission - is open to implementation. “We firmly insist and now everyone realizes that it can be done. There will be several sources of gas supply,” he said. Referring to the South Stream gas pipeline project, which Russia said it was abandoning in December 2014, Borisov said no written statement on the cancellation of the project has been submitted to the Bulgarian side so far.
Source: Standart (21.03.2015)

Bulgaria's BEH, units may be in breach of anti-trust rules - EC The European Commission has sent a statement of objections to state-operated Bulgarian Energy Holding (BEH) and two if its units, informing them that they may have breached EU antitrust rules. At this stage, the Commission has concerns that BEH and gas monopoly Bulgargaz and gas transmission system operator Bulgartransgaz have refused to give competitors access to the gas transmission network and the gas storage facility, as well as reserved capacity they do not need on the gas import pipeline. The Commission opened formal proceedings against BEH in July 2013 to investigate whether the company may be abusing its dominant market position in the gas market in Bulgaria. In a separate investigation, in August 2014 the Commission issued a statement of objections to BEH concerning possible territorial restrictions in its electricity supply contracts with traders on the non-regulated Bulgarian wholesale electricity market. A statement of objections is a formal step in Commission investigations into suspected violations of EU antitrust rules. If, after the parties have exercised their rights of defence, the Commission concludes that there is evidence of an infringement, it can issue a decision prohibiting the conduct and impose a fine of up to 10% of a company’s annual worldwide turnover.
Source: econ.bg (24.03.2015)

Heat Supply Sofia to be concessioned Heat Supply Sofia SPJSC will be given in concession. This is what municipal advisers voted in favour of at the meeting of the Municipal Council that took place on the 12 of March. The decision is taken with a view of better functioning of the company. Grant Thornton that was hired to make analysis for Heat Supply Sofia SPJSC’s state prepared a report stating that public-private partnership via conducting a concession procedure is the best method. The concession will allow, on the one hand, to use the resources of the private partner, and on the other, the town hall will receive concession fee with which debts to BEH will be covered.
Source: money.bg (24.03.2015)

Bulgaria asks Westinghouse to take up 49% stake in Kozloduy nuclear reactor Bulgaria’s Cabinet has asked US nuclear firm Westinghouse Electric to join the proposed expansion of the Kozloduy nuclear power plant as a strategic investor and shareholder with a 49 per cent stake, Energy Minister Temenouzhka Petkova said on March 26. Speaking on the sidelines of a conference on nuclear energy, Petkova said that the government has also asked Westinghouse to raise “project financing corresponding to their stake” and then stay on as a shareholder for as long as possible. Last year, the now-departed Plamen Oresharski administration signed a shareholder agreement with Westinghouse to build a new 1000MW reactor at Kozloduy, with an estimated cost of $5.3 billion. The deal was agreed by the cabinet just days before it left office, which irked the socialists who were backing the government, but must still be approved by the current government. That deadline expires on March 31, Petkova said, with negotiations between the government and Westinghouse expected to go to the wire. The shareholder agreement envisions the Kozloduy power plant, which is fully state-owned, holding a 40 per cent stake in the company that would build the new reactor, with Westinghouse taking the rest. The US firm would provide all of the plant equipment, design, engineering and fuel. The agreement contained no financial commitments for the Bulgarian state, since, at the point it was signed, work on the financial framework and the engineering agreements had not started yet. Petkova said that the Cabinet was keen on the project requiring no government guarantees, thus having no impact on Bulgaria’s debt or budget deficit. Asked how the government planned to raise its 51 per cent share of financing – provided Westinghouse agreed to raise the remainder – Petkova said that it was too early to discuss the issue before the negotiations with Westinghouse were concluded.
Source: vesti.bg (27.03.2015)

Project for Bulgaria’s 7th unit of NPP Kozloduy fails Westinghouse refused to become a strategic investor in a new nuclear capacity. The company will not take part in the project for the 7th power unit of NPP Kozloduy, several government sources confirmed. The deadline to sign the agreement was March 31. Following the refusal of Westinghouse the establishment of the new nuclear capacity seems impossible. Following the visit of US Secretary of State John Kerry rumours have been spread about financing for the project being attracted from Export-Import Bank of the United States.
Source: Capital (02.04.2015)

Bulgartransgaz seeks contractor for Chiren’s extension Bulgarian gas transmission system operator Bulgartransgaz opened a tender for an exploratory drilling at Chiren underground gas repository an indicative value EUR of 9.77 million. The value of the contract does not include value added tax (VAT). Bids must be sent by May 25. The construction of the drilling is part of the repair and expansion of the gas repository. Chiren’s capacity has to be doubled so that it may collect up to 1 billion cubic meters natural gas. In that way the repository is to turn into a facility of regional importance. Bulgartransgaz is a subsidiary of state-owned Bulgarian Energy Holding.
Source: Duma (06.04.2015)

Bulgaria's Mini Maritsa Iztok gets 25.6 mln euro loan Bulgarian coal mining complex Mini Maritsa Iztok has signed a BGN 50 million loan agreement with two banks, local media reported. The coal mining company will use the proceeds from the loan to partly cover its debts to suppliers, state-owned Bulgarian National Radio reported on Tuesday, quoting Mini Maritsa Iztok's executive director Andon Andonov. Under the agreement, the loan will be repaid by the state-owned Maritsa Iztok 2 thermal power plant (TPP) which in turn owes the coal mining company BGN 59.2 million. According to Andonov, the Bulgarian units of US companies AES and ContourGlobal owe Mini Maritsa Iztok a total of BGN 206 million, and local power producer Brikel owes it a further BGN 47 million. AES operates the Maritsa Iztok 1 coal-fired plant in Galabovo and ContourGlobal operates the Maritsa Iztok 3 TPP. Earlier this month the two companies agreed with state-owned power utility NEK on a decrease by 14% and 17%, respectively, in the capacity price for electricity produced by their coal-fired plants in the southeast of the country. For its part, NEK will pay all arrears to the two companies amounting to a total of BGN 700 million. These agreements, however, have no bearing on the US companies' debt to Mini Maritsa Iztok, Andonov said.
Source: mediapool.bg (15.04.2015)

France becomes engine of Bulgaria's gas hub France will become the engine in Europe for Bulgaria's gas hub. This is the promise Bulgaria's visiting Prime Minister Boyko Borisov received from French President Francois Hollande after their meeting at the Elysee Palace in Paris on Tuesday afternoon. The meeting between the two lasted longer than the planned protocol. Mr Borisov explained to Mr Hollande his detailed plans and proposals for the construction of a gas hub of Russian gas as a replacement of the failed south Stream project. "France has always helped Bulgaria in heavy times. The gas hub and the South Stream are wonderful opportunities to use the entire transmission system of Bulgaria with new compressor stations, which have strategic place. So I am very happy that President Hollande understood me. I explained to him the possible routes over a map for half an hour and all I can say to the Bulgarians say that we found the rotor to help us in the realization of this idea. And France is a country that has a great impact in the European Council, European Commission and relations with Russia, "the PM said after the meeting.
Source: Standart (15.04.2015)

Bulgargaz seeks 10 banks Bulgargaz announced a tender for selection of ten serving banks. The reason for the high number is that public companies must not concentrate more than 25% of their net money in a credit institution. So far, Bulgargaz did not comply and 96.93% of the company's funds proved blocked in accounts in CCB. According to sources these funds are over USD 90 million. Bulgargaz will evaluate the offers in quantitative and qualitative criteria. Quality criteria include the availability of online banking platform, the period for which a transfer of large sums can be executed and the availability of a branch or headquarters in Sofia. The quantitative criteria include all service charges of the bank, the possibility of fast online banking and fees for transfers to other credit institutions. In early March, the parent company of Bulgargaz - Bulgarian Energy Holding, also announced selection procedure for 5 serving banks. Like Bulgargaz, the holding kept a lot of money in the CCB until recently.
Source: Trud (17.04.2015)

Bulgaria seeks to redraw EU pipeline map away from Russia Bulgaria is about to open a licensing round for oil and gas in the Black Sea as it seeks to turn itself into an energy hub and redraw the European pipeline map to curb the country's dependence on Russia, a senior official said on Wednesday. Bulgaria was among the countries locked into Russia's abandoned South Stream project that would have delivered gas directly to the European Union, bypassing Ukraine, traditionally a main transit route. Under pressure from the European Union, Russia abandoned the plan last year and announced it would instead develop a new route, Turkish Stream, which does not include EU member Bulgaria. This week, Gazprom warned the EU against attempts to thwart its gas strategy. In an interview on the sidelines of a meeting of EU energy and environment ministers in Riga, Bulgaria's Deputy Energy Minister Zhecho Stankov aligned himself with the European Commission's plans to find alternative routes and energy suppliers to Russia. Stankov said Bulgaria, which he said was 95 percent dependent on Russian gas, had never been officially notified of the collapse of South Stream and that the holding company in which Bulgaria has a 50 percent stake with Russia's Gazprom remained active. But the priority for Bulgaria is diversification from Russia and on making Bulgaria an energy hub.
Source: Reuters (17.04.2015)

Bulgaria Launches Tenders for Oil, Gas Exploration Rights at Silistar, Teres Blocks The tenders for oil and natural gas exploration rights for Block 1-14 Silistar and Block 1-22 Teres, two exploration blocks located in Bulgaria's Black Sea continental shelf and exclusive economic zone, are underway. The licenses for prospecting and/or exploration of oil and natural gas will be awarded for 5-year periods. The applicant-merchant or at least one of the participants in the applicant-corporation should have generated total net income of sales for the last 3 financial years, depending on the date on which it was established, not less than EUR 150 000 000. The applicants’ proposals for the competition shall be assessed on the basis of the proposed working programmes, resources for environmental protection and bonuses as provided for in the competition dossier. The deadline for submitting the proposals under the competition dossier expires on the 155th day following the publication of this Decision in the Official Journal of the European Union. The holders of the permits are expected to be selected in early autumn. The launch of the competitions for the two exploration blocks is part of the commitment of the Bulgarian government to reduce the country’s dependence on imports and to develop its domestic oil and gas reserves.The government expects that the competitions will attract the attention of leading international companies in the sector, as is the case with the Han Asparuh exploration block.
Source: Standart (21.04.2015)

Nord Pool Spot to Operate Bulgaria's Energy Exchange Nord Pool Spot, the energy exchange running Europe's largest electricity market, signed Wednesday an agreement also to manage activity at IBEX, the Independent Bulgarian Energy Exchange. As many as 380 companies from 20 states trade on the Nord Pool Spot. IBEX, on the other hand, was recently granted a 10-year license to organize the market in Bulgaria. The agreement with IBEX aims to prepare and facilitate the implementation of the first competitive Bulgarian day-ahead power market that will be extended with an intraday market at a later stage. The day-ahead power market in Bulgaria is due to be operational in Q4, 2015. The agreement signed by IBEX will ensure that the power exchange will function in line with EU rules. The choice was made after a thorough investigation and dialogue with the EU Commission. Under EU requirements, Bulgaria's energy market has to be fully liberalized by end-2015, with all consumers buying electricity at market prices.
Source: Capital (23.04.2015)

Bulgaria promotes Black Sea oil drilling in Texas Parliamentary energy committee chair Delyan Dobrev is showcasing the opportunities for oil and gas drilling in Bulgaria’s Black Sea exploration blocks to leading US and international companies in Houston today. Dobrev is taking part in the OTC 2015 (Offshore Technology Conference) alongside Deputy Energy Minister Zhecho Stankov and Delyan Dimitrov from the Board of Directors of state-owned gas transmission operator Bulgartransgaz. The delegation will hold talks with representatives of some of the largest US companies in the sector. The focus will be on opportunities to work in the Black Sea after launching oil and gas exploration and production procedures for Teres and Silistar. The tenders for oil and natural gas exploration rights for Block 1-14 Silistar and Block 1-22 Teres, two exploration blocks located in Bulgaria's Black Sea continental shelf and exclusive economic zone, were launched on April 18 in the wake of announcements in the Official Journal of the European Union. The winner will get a 5-year license for prospecting and/or exploration of oil and natural gas. Frankfurter Allgemeine Zeitung (F.A.Z.) reports that France’s Total, Austria’s OMV and Spain’s Repsol have been working in the block Han Asparuh for three years. Preliminary drilling to confirm deposits is scheduled in 2016.
Source: Standart (05.05.2015)

Another major US company is interested in Bulgaria's Black Sea gas Another major US company is interested in the "Teres" and "Silistar" gas fields in Bulgaria's Black Sea, it turned out in an energy conference held in Houston, Texas. Now "Andarko" is also joining the race, its representative Eric Fry informed while meeting with National Assembly Energy Committee head Delyan Dobrev, Deputy Minister of Energy Jecho Stankov and Deputy Chairman of the Board of "Bulgartransgaz" Delyan Dimitrov. the meeting was held in Houston, Texas within the frames of the the leading global exhibition OTC 2015, dedicated to the exploration and production of oil and gas. Two days ago the American oil giant "Exxon Mobile" also showed significant interest in Bulgaria's undeveloped fields and stated its participation. Anadarko Petroleum Corporation is an American oil and gas exploration company and one of the world's largest publicly traded oil and gas exploration and production companies, with approximately 2.79 billion barrels of oil equivalent (BOE) of proved reserves and annual sales volumes of 274 million BOE as of December 31, 2013. Anadarko employs a worldwide workforce of about 6,000. The company is headquartered in The Woodlands, SPD Montgomery County, Texas.
Source: Standart (07.05.2015)

Bulgarian Energy Holding Reports Declining Income, Profit in 2014 The operating income of the Bulgarian Energy Holding (BEH) EAD dived by 64.16 per cent in 2014 from 2013, and the profit before tax plummeted from BGN 414.8 mln to BGN 285.9 mln, according to the company's Annual Report for 2014 that has been published. On March 20, 2015,Fitch Ratings downgraded BEH's long-term foreign and local currency issuer default ratings (IDR) and its foreign currency senior unsecured rating one level to 'BB' from 'BB+' and placed the ratings on rating watch negative (RWN), the report recalls. "The rating downgrade reflects a substantial deterioration of BEH group's credit metrics driven by a wider tariff deficit at its subsidiary Natsionalna Elektricheska Kompania EAD (NEK) amid an unfavourable regulatory and market environment," the ratings agency said. Fitch views the Bulgarian regulatory environment as less developed and far less predictable than in western Europe. "Several legislative and regulatory changes aimed at narrowing NEK's deficit are planned by the government, parliament and the regulatory office for 2015, but may be subject to delays or may yield lower-than-expected positive impact as happened in 2014 with some planned changes." A substantial narrowing of NEK's deficit and increased predictability of cash flows at BEH group could lead to a positive rating action, the report points out. The company's principal sources of income are dividends received, interest received on loans extended to subsidiaries, and services provided to subsidiaries in financial management, project management, corporate governance and business planning, legal and regulatory matters, public relations and communications.
Source: econ.bg (11.05.2015)

Bulgaria's Bulgargaz plans to seek 6.61% drop in gas prices in Q3 Bulgarian gas monopoly Bulgargaz said on Monday it plans to ask the regulator to approve a 6.61% decrease in the price at which the company sells natural gas to its wholesale clients in the third quarter of 2015. The tariff of BGN 489.10 per 1,000 cu m proposed by Bulgargaz does not include Value Added Tax and excise duties, the company said in a notice on its website. It reflects an expected drop in the price which Bulgargaz will pay for gas supplies in the July-September period, the company added. Bulgargaz will make public its final proposal for third-quarter natural gas prices on June 10, upon submitting it with the energy regulator. The adjustment in the wholesale tariff, made on a quarterly basis, must be approved by the energy regulator to take effect. Bulgargaz is a subsidiary of the state-owned Bulgarian Energy Holding. Bulgaria imports almost all the natural gas it needs from Russia through a pipeline crossing the territories of Ukraine, Moldova and Romania.
Source: Sega (12.05.2015)

Bulgargaz and Bulgartransgaz held over 25% of their money in CCB The total amount of cash in the CCB of the Bulgarian Energy Holding (BEH) and its subsidiaries amounted to BGN 132.839 million, said Minister of Energy Temenuzhka Petkova. "In particular, the holding’s current accounts in CCB amounted to BGN 44.073 million at the time of placing the bank under special supervision. On June 20, 2014 NPP Kozloduy had cash in the CCB of over BGN 4 million. The requirement for a net concentration is observed as of June 30, 2014. NEK had BGN 14 million in CCB. The company has a contract with the bank following a procedure of public procurement law. Minister Petkova pointed out that the choice of bank is approved by resolution of the Board of Directors. Cash of ESO in the bank amounted to over BGN 3 million.
Source: Presa (27.05.2015)

25% of BEH put on the BSE Bulgaria will offer 20-25% of the shares of Bulgarian Energy Holding (BEH) on the capital markets, Deputy Energy Minister Nikolay Nikolov announced. This will happen after stabilization of the holding, which will facilitate the liberalization of the market, he said. Following the liberalization, BEH subsidiaries will improve their financial results, will refinance their obligations, and through sales of shares will fund modernizations, Nikolov said. Meanwhile, BEH is about to take BGN 800 million government guaranteed loan, Deputy Minister Nikolov said. It will be used to pay the obligations of the BEH’s subsidiary NEK to both US TPPs in the Maritza Iztok complex.
Source: Standart (27.05.2015)

NEK obligations to the two US plants in Maritsa - Iztok grows within the hours, CEO of BEH Jaklin Cohen said during a parliament hearing on the energy situation. Cohen said he led tough negotiations with the plants for final signing of the contracts with which to reduce the cost of availability, which NEK pays. The effect of this measure will save BGN 1 billion for the remaining 10 years of the contract, or BGN 100 million per year. The condition to reduce the price is the payment of NEK’s debt to two companies - AES Galabovo Maritsa East 1 and Contour Global Maritsa East 3. Initially it was announced to be 700 million. Yesterday, Deputy Minister of Energy Nikolay Nikolov said the debt is BGN 800 million and that Bulgarian Energy Holding seeks to draw government loan to be repay the obligations.
Source: Dnevnik (28.05.2015)

Heavy industry insists concessions in the price of electricity to be fact until July Looming increase in electricity prices from July 1 by an average of 1.9% for households and 22% for business consumers becomes more and more of a worry to the heavy industry, which for years insisted on concessions in the price. Reason is that the ordinance, which should enable the introduction of discounts for large energy consumers, is not yet ready. Under the amended Energy Act, adopted in early March, that order had to be drawn up jointly by the Ministries of Energy, Finance and Economy within 6 months from the entry into force of the amendments. It must determine the mechanism by which to apply the facilitated regime. According to experts the idea of concessions is to benefit mainly large metallurgical enterprises, which due to their very nature, are among the most energy-intensive industries despite introduced energy efficiency measures. As a result for them the resolve for in the price of energy to be finalized by July 1 is vital, as then the regulator should define the new electricity prices for the next year.
Source: Capital (04.06.2015)

Washington is asking Bulgaria about its interconnectors Interconnectors with neighboring countries of Bulgaria and the opportunities for energy routes diversification were some of the main topics of discussion between Bulgarian Prime Minister Boyko Borisov and Amos J Hochstein, Special Envoy and Coordinator for International Energy Affairs at the US State Department. "Bulgaria is strongly committed to the construction of interconnectors and especially the gas link with Greece. The greatest progress in the construction of pipes is with Romania, the funding for the feasibility study of the interconnector with Turkey is provided. As for Serbia, despite the slowdown, we have assurances to accelerate the process "said Mr Borisov. He emphasized that the construction of the Southern Gas Corridor will ensure Europe's energy security through diversification of sources and routes of supply of energy resources, which is part of the European energy alliance. The Prime Minister pointed out that work is being done towards the liberalization of the Bulgarian electricity market by the end of the year. Shortly thereafter, the US envoy was received by Foreign Minister Daniel Mitov. Bulgaria's No. 1 diplomat expressed his support for the full integration of the gas market in Central and Eastern Europe in partnership with neighboring countries and EU support.
Source: Standart (11.06.2015)

Construction of Bulgaria's seventh nuclear reactor will cost USD 5.3 bln Construction of the 7th reactor of NPP "Kozloduy" will cost 5.3 billion dollars, it emerged during a conference at the Ministry of energy between special envoy of Secretary of State John Kerry Amos Hochstein and Bulgarian Minister of energy Temenuzhka Petkova. The specific amount is the final price of the contract. The participation of NPP "Kozloduy" in building the future power capacity will amount to 400 million dollars. WE recall that yesterday the Special Representative of the US Secretary of State Amos Hochstein arrived in Bulgaria. He met with the Minister of Energy, President Rosen Plevneliev, Prime Minister Boyko Borisov and Foreign Minister Daniel Mitov and they discussed the diversification of natural gas supplies to Bulgaria.
Source: Standart (12.06.2015)

Austrian OMV may transfer Romanian gas via Bulgaria Austrian OMV has interest in transferring natural gas through Bulgaria, if reserves are found in the deposit which is being analyzed together with ExxonMobil in Romania’s territory waters in the Black sea. The idea is about 1-2 billion cubic meters of gas annually to be transferred through the interconnectors gas link between Bulgaria and Romania, which has not yet been entered into exploitation. The reason for the interest in transit of gas via the Bulgarian gas network was prompted by the lack of well-developed gas infrastructure in Romania. Part of transit quantities can even remain in Bulgaria if Bulgargaz or other distribution companies show interest in such a deal. Three candidates showed interest in the pre-project research for construction of interconnector link between Bulgaria and Turkey. These are: Chimcomplect Engineering AD, which was the designer for the construction of Nabucco, which never started, Gastech BG AD, which is owned by Overgas Holding and makes feasibility study of the gas link with Serbia and Burgasnefteproekt Ltd., owned by Lukoil.
Source: Standart (12.06.2015)

OMV is building a gas pipe through Bulgaria to link the Turkish Stream to Austria Austrian state energy giant OMV is building a gas pipeline linking the so-called Turkish Stream passing at the Bulgarian-Turkish border to the central gas distribution center in Baumgarten near Vienna, Austrian edition "Die Presse" reports. Rainer Seele, the future CEO of OMV, plans a new path for Russian gas to Vienna with Gazprom. Seele will take over one of the most powerful energy companies in Central Europe on July 1st. The project, passing through Bulgaria, Romania and Hungary will be lead by Reinhard Mitschek - a former boss of the Nabucco pipeline project. Since 2009, he has been leading Wintershall - a division of the chemical giant BASF, one of the main European partners of the Russian gas giant and frank critic of EU sanctions against the ruling at Russia. OMV Supervisory Board Chair Rudolf Kemler noted that the delivery of Russian gas through Ukraine may change and that it is "very important that OMV may be included in this process and we can play a key role as an important point of delivery of gas from Russia to Central Europe."
Source: Standart (15.06.2015)

Businesses want resignations because of the price of electricity BICA, BIA and the CEIBG demand an urgent meeting with Prime Minister Boyko Borisov regarding the price of electricity. The three national representative organizations report that they will demand the resignation of Energy Minister Temenuzhka Petkova and President of KEVR Ivan Ivanov, if no measures are taken for the introduction of European pricing of electricity. "In addition to our protests against the planned rise in electricity from July 1 - between 13% and 20% for the majority of active enterprises in Bulgaria and between 4% and 13% for the largest energy intensive production – we again categorically insist that Bulgaria implement EU policies and best practices in the energy sector," the organizations wrote in a letter to PM Borisov. The refusal of reforms in the energy sector and the decision all accumulated imbalances to be paid by local businesses are the main reason that makes BICA, BIA and the CEIBG request the two resignations. The business organizations point out that the decision has been taken without an impact assessment on the economy from the increase in the price of electricity for business use, as required by European directives. The three organizations will approach the prosecution for inspections on how were signed long-term contracts for power purchase, are received preferences for renewable energy eligible and whether the production of cogeneration is high-effective.
Source: Standart (16.06.2015)

BG factories to oppose 20% electricity price hike from July 1 with strike The decision of the State Energy and Water Regulatory Commission / KEVR / to increase electricity prices by up to 20% from July 1 is truly angering local producers. As a result, four employers' organizations have announced a one -hour protest strike on June 26. According to the industrial employers, the intent of the Energy Ministry to partially offset electricity costs for about 30 enterprises that have an electricity consumption over 30 GWh per annum does not solve the problems in the sector which have been accumulating for years. Our questions were left unanswered, said CEIBG BICA, BIA and BCCI in a declaration. The production will be suspended for one hour in the enterprises that are members of the Confederation of Employers and Industrialists in Bulgaria / KRIB / Association of Industrial Capital in Bulgaria / BICA / Bulgarian Industrial Association / BIA / and Bulgarian Chamber of Commerce and Industry / BCCI /. The only exceptions are those with a continuous production cycle. Although employers' organizations recently issued a position on the appreciation of the current for business, they say that many of their questions stayed unanswered. One of them is why the amount of the fixed (respectively regulated by KEVR) final price of electricity in the country is among the highest ones in Europe. The data indicate that the fixed price is only higher in Denmark - yet compared to all others Bulgarian fixed industrial electricity prices are between 2 and 8 times higher. According to the business organizations the other main unanswered question is about green energy. They ask why the "green energy" supplement was raised by 43.4% (from BGN 11.1 / MWh. to 15, 92 lev / MWh.)
Source: Standart (22.06.2015)

Bulgaria proposes gas storage facility for Turkish Stream Bulgaria wants to build a storage facility for natural gas from the Turkish Stream pipeline project, according to Russian Energy Minister Alexander Novak, Turkish Hurriyet reports. Russian President Vladimir Putin announced the cancellation of the South Stream gas pipeline project on Dec. 1, 2014. Instead, he proposed a new natural gas pipeline route through Turkey's northwestern Thrace region to reach Greece. The route is commonly referred to as the Turkish Stream. "Bulgaria has renewed desire to build a natural gas storage facility," Novak said on June 19, adding that the facility would be located on Bulgarian soil and not on the border between Turkey and Bulgaria. Novak addressed the media during the International Economic Forum (SPIEF) held in St. Petersburg and spoke of his meeting with Temenuzhka Petkova, the Bulgarian energy minister. The same proposal was made six months ago, he said without providing further information regarding Russia's position on the project. Turkish Stream is expected to have a capacity of 63 billion cubic meters of natural gas per year. It will deliver 47 billion cubic meters of gas to Europe, while the remaining amount will be allocated for Turkey's domestic use. The agreement for the Turkish Stream gas pipeline's construction may be signed by the end of June, Novak said June 18.
Source: BTA (23.06.2015)

Only companies with experience and money will look for oil and gas in the Black sea Ministry of Energy as a principal will be able to eliminate candidates in tenders for granting a concession for search and extraction of oil and gas in the Black Sea, if they do not meet the minimum requirements for technical capacity and financial resources. These amendments to the Law on Mineral resources were approved of by the MPs in the Energy Committee in the Parliament. The bill was proposed by the Cabinet at the end of May. With the amendments to the Law on Mineral Resources companies will be able to start mining only if they have a plan for recovery of waste. The control on execution of activities on search and extraction of mineral resources is shared between the Energy Minister, the Minister of Environment and Water, Minister of Labor and Minister of Culture, as well as mayors of municipalities.
Source: Duma (29.06.2015)

World Bank to Audit Bulgaria’s Energy Market Prior to Full Liberalization The World Bank will draft a comprehensive review of the financial state of Bulgaria’s energy sector and identify steps towards full liberalization of the electricity market by the end of the year under a deal signed on Friday. The Bulgarian Energy Holding (BEH) signed a consultancy services contract with the World Bank in Sofia, under which the World Bank will make a financial analysis of the sector, 3e-news.net reported. The value of the deal was not disclosed. World Bank experts will analyse in particular the financial state of the state-run National Electricity Company NEK, which has been persistenly plagued by deficits.The analysis will serve as the basis for choosing a model for a Bulgarian energy exchange, Energy Minister Temenuzhka Petkova explained at a news conference following the signing of the deal. Finding a compensation mechanism that will prevent the accumulation of deficits at NEK at the opening of the energy exchange will be a key part of the assignment. By November the government should be ready to introduce changes to the Energy Law that will provide the legal basis for the complete liberalization of the electricity market. A target date for the liberalization to take place is early 2016, Petkova said. Looking ahead, BEH CEO Jacklen Cohen commented they have the ambition to achieve the liberalization of the market in a very short time span. “The next step after the liberalization will be to connect our market to the already existing markets,” Cohen said
Source: investor.bg (10.08.2015)

The share capital of the Bulgarian Energy Holding (BEH) will be increased by BGN 239.4 mln., Energy Minister Temenuzhka Petkova decided. The amount comes from the profit of the holding, which includes the largest state-owned energy companies. So instead of money to go to the state budget in the form of dividends, they will be used by the company itself. After the increase the company’s main capital will become BGN 3.18 billion.
Source: Trud (11.08.2015)

Bulgaria to forego dividend from state energy holding Bulgaria’s Energy Ministry will not seek any dividend from the Bulgarian Energy Holding (BEH) for 2014, using the money instead to bolster the group’s equity capital as it seeks to borrow money to pay back debts owed by its electric utility subsidiary to two power plants owned by US private investors, reports in Bulgarian media said on August 12, citing filings with the country’s trade register. According to the reports, the ministry was due to receive 239.5 million leva, or about 122.4 million euro, in dividend from BEH, the umbrella structure set up by Bulgarian government in 2008 to consolidate state-owned companies in the energy industry. BEH is currently seeking to borrow at least 800 million leva for its subsidiary NEK, the state electric utility, which needs the money to pay back the debts owed to AES Maritsa Iztok 1 and ContourGlobal Maritsa Iztok 3 power plants as part of an agreement under which the two coal-powered plants would reduce the price at which they sell electricity to NEK. (sofia globe)
Source: Sega (13.08.2015)

List of Bulgaria’s CorpBank creditors published A list of creditors of Corporate Commercial Bank (CorpBank) has been published in the Commercial Register. The 173-page list contains the names of individuals and firms with recognised claims. The biggest creditor is the Bulgarian Deposit Insurance Fund (BDIF), which paid BGN 3,647,600,000 to 109,230 depositors from December 4, 2014 to August 17, 2015. The list contains the names of depositors with deposits of BGN 196,000, which is guaranteed by the state. The biggest bank creditors are the Bulgarian Development Bank (over BGN 46 million), Societe Generale, Paris (over BGN 44 million), Commerzbank AG, Frankfurt (almost BGN 12.5 million), the Privatisation and Post-Privatisation Control Agency (PPCA) (BGN 10.7 million), and the National Revenue Agency (NRA) (over BGN 3.2 million). Toplofikatsiya Sofia heating utility is the biggest creditor among companies with over BGN 90 million. It is followed by the Dunarit military plant (over BGN 85 million), the Telish winery, NURTS, and others. Hospitals are also among the CorpBank creditors. The list also contains the names of physical persons but Minister of Culture Vezhdi Rashidov and former prime minister Ivan Kostov are not among them. They had themselves said they had money in the bank. The list contains the name of Ahmet Dogan, honorary chairperson of the Movement for Rights and Freedoms (MRF). He had BGN 694,000 in CorpBank. The list was compiled on June 22 and does not include claims that had been paid because they were covered by the state guarantee. The list can be appealed against in up to 14 days, after which the assignees will have their say on claims in 7 days.
Source: Agency Focus (19.08.2015)

More than four months after signing an undertaking to pay the huge debt of a little under 900 million leva to the two US-owned TPPs in the Maritsa East basin: AES Maritza East 1 and ContourGlobal Maritsa East 3, the Bulgarian Energy Holding will at last seek a nearly 1,000 million leva loan in a procedure that will be announced in the "Official Journal of the European Union" on August 27, said Energy Minister Temenouzhka Petkova. The loan, which will be without a State guarantee, postpones the reduction of payments to the TPPs until November, even though this was initially expected to happen in July.
Source: Monitor (19.08.2015)

More than BGN 2.4 million collected for 5 days in NEC’s rescue fund Funds are already being accumulated in the fund Security of the electricity system and as of 17th of August raised money reach over BGN 2.4 million. This what energy minister said. Just in a few days between 24th and 31sy of July the sum was accumulated from the 5% tax on sold power. By the end of this year, NEC has to pay off its obligations to AES Galabovo Maritsa East 1 and ContourGlobal Maritsa East 3. Meanwhile, the Cabinet decided yesterday over 130 hectares of forest lands for the expansion of coal mining from the mine Troianovo 1-site 2 will go to the state mines. Mines Maritsa Iztok has to pay BGN 1.2 million for the change of land utilization has, while the price for compensatory afforestation is set at BGN 1.3 million
Source: Monitor (20.08.2015)

17 Bulgarian companies fall in among the largest 500 in Central and Eastern Europe 17 Bulgarian companies are shortlisted in the rating of the largest companies in Central and Eastern Europe for 2014. A year earlier their number was 13. The Bulgarian companies’ total turnover reaches EUR 17.99 billion, which is a growth by 4.24%. This is what rating of the International credit insurer Coface - Coface CEE Top 500 shows. It is published for the seventh consecutive year, Companies in the entire region generate total turnover of EUR 572 billion, which exceeds almost half of the total sum of the nominal GDP of these economies. The chart ranks companies, as it takes into account as a key indicator their turnover as well as additional indicators such as number of employees and net profit. Number of Bulgarian companies in the rating is growing, which is definitely a positive sign. As a whole, their turnover also goes up, but at comparatively lower pace, which moves them at lower places in the chart. The leader’s position is occupied by Lukoil Neftochim Burgas again, though the company holds the 23rd place. Aurubis is the industrial company that takes the highest position-52 of all Bulgarian participants. The company registers the most serious growth in profit among Bulgarian enterprises-by nearly 216%. The largest ten local companies in the charts are as follows: Lukoil Neftochim BEH, Aurubis Bulgaria, Lukoil Bulgaria, NEC, Bulgargaz, CEZ Electro Bulgaria, OMV Bulgaria, Kaufland Bulgaria and Saxa
Source: investor.bg (27.08.2015)

Watchdog OKs Agreement between Bulgaria’s National Power Co, ContourGlobal Maritsa East 3 TPP Bulgaria’s Commission for Energy and Water Regulation (KEVR) has approved the power purchase agreement between US-owned thermal power plant ContourGlobal Maritsa East 3 TPP and the National Electric Company (NEK). KEVR Chair Ivan Ivanov announced Thursday that the agreement signed on August 14 between the two entities on amending the existing PPA had been approved at a closed meeting of the watchdog. Ivanov, as cited by the Focus news agency, said that the move paved the way for the entry into force of the new terms of the contracts with the two US-owned TPPs, ContourGlobal Maritsa East 3 TPP and AES 3C Maritza East I. In order for the two agreements to take effect, Bulgaria’s national power utility needs to pay its debt to the two TPPs first. Ivanov made clear that a tender would be announced via the Official Journal of the European Union for a bank to provide NEK with the resources necessary for the purpose. NEK needs a loan of around BGN 1 B to settle its debts to the two US-owned TPPs.
Source: Capital (28.08.2015)

Bulgarian Energy Holding Looking for EUR 650 M The Bulgarian Energy Holding (BEH) has launched a procedure to pick a lender that would help it pay off part of its debts. BEH, a structure managing state-owned assets in the energy sector, is now committed to make the payments under a deal with the AES and ContourGlobal thermal power plants which was reached in the spring. Earlier estimates suggested the sum amounts to EUR 450 M. The move, if successful, could help the state-owned National Electricity Company (NEK) partly solve its debt crisis which has been posing risks to Bulgaria's energy system. April's deal between the state, AES and ContourGlobal was one of the arguments for the national energy regulator to increase prices for household consumers from August 1. In return, when debts have been settled, fixed prices for electricity generated by the AES Maritza East 1 and ContourGlobal Maritsa East 3 TPPs will go down over the next years, allowing NEK to save some EUR 500 M (BGN 1 B) over ten years. Preferential pricing contracts were signed under the administration of PM Ivan Kostov (1997-2001), and some experts have argued financial imbalances in the energy system should be partly attributed to the contracts.
Source: Dnevnik (07.09.2015)

Only six companies are interested in exploring Teres and Silistar Six companies have purchased papers for participation in procedure on getting permission for exploration in Block 1-14 Silistar and Block 1-22 Teres, which are located in the Black sea. Companies, interested in the procedure have to hand out their applications up to 7th of September, while by the 23rd of the same month final offers have to be rendered. There are no big companies among those six that will take part in the concession procedure. The reason is that there is no bug chance to find gas in the two blocks. They have been explored numerous times, as accumulated data does not give huge hopes serious deposits to be founded. At the announced in 2013 competition for Teres no candidate issued an offer. Explanation is in overestimated requirements, including rendering of a bonus to the amount of EUR 1 billion and obligatory drilling. As opposed to Silistar and Teres, block Khan Asparuh has better prospects for finding deposits of gas there. Detailed seismic 2D and 3D surveys have been made there, while in the middle of next year first exploratory drilling will be conducted.
Source: Capital (07.09.2015)

Fitch Lowers Bulgarian Energy Holding’s Rating to ‘BB-‘ Fitch Ratings has downgraded Bulgarian Energy Holding EAD's (BEH) long-term foreign and local currency ratings one notch to 'BB-' from 'BB'. BEH’s foreign currency senior unsecured rating was also lowered to 'BB-' from 'BB'. The outlook is negative, the rating. The rating downgrade reflects Fitch’s expectations that the BEH group's credit ratios will be weak in 2015-2016, largely due to accumulated power tariff deficit at BEH's subsidiary national Eelectricity Company (NEK). “The rating downgrade is limited to one notch as we expect funds from operations (FFO) in 2015-2016 to improve from low 2014 levels on the back of a smaller tariff deficit at NEK. This is due to various legislative and regulatory changes in 2015 and renegotiation of NEK's long-term power purchase agreements with two thermal power plants, AES-3C Maritsa East 1 EOOD and ContourGlobal Maritsa East 3 AD.” Fitch also said the negative outlook incorporates the agency’s projected FFO adjusted net leverage above the 5x guideline for the current ratings by 2016 before decreasing to below 5x in 2017. The negative outlook also reflects the BEH group's weak liquidity position in light of large overdue trade payables at NEK and also the possible removal of the single-notch uplift for BEH for state support in the next one to two years if most of its new debt is raised without state guarantees.
Source: money.bg (18.09.2015)

Bulgaria's Bulgartransgaz opens EUR 4.7 mln pipeline construction tender Bulgarian gas transmission system operator Bulgartransgaz has opened a EUR 4.7 million tender for construction works for 2,100 metres of a pipeline, connecting the gas transmission networks of Bulgaria and Romania, a notice in the European Union’s procurement journal indicated. The order is for construtcion of gas pipeline Lozenets-Nedqlsko, related to expansion of tranzit route to Turkey. The value of the contract does not include value added tax, the notice published on Saturday in the Tenders Electronic Daily (TED) showed. The contract's duration is 210 days. Bids should be send by October 16. Bulgartransgaz is a subsidiary of state-owned Bulgarian Energy Holding. Participants in the open procedure must give a guarantee for the participation of BGN 300 thousand. Bulgartransgaz will pay a contractor in advance of 20% of the contract value. Applicants must also have available funds of BGN 14 million to qualify for the procedure.
Source: Capital (23.09.2015)

Term for seeking of loan for NEC extended Bulgarian energy holding extended the term in which banks that want to lend the state company a loan of EUR 650 million may hand out their offers. The new deadline expires on Tuesday. The energy holding announced the procedure for a new loan on the 17th of September. With the sought EUR 650 million debts of National electricity company (NEC) to the two American thermal power plants – AES Maritsa East ² and ContourGlobal Maritsa East 3 JSC will be covered. They are assessed at BGN 1 billion. That is the requirement if negotiated drop in prices is to enter into force. From them NEC has to save BGN 1 billion in the coming ten years.
Source: Monitor (29.09.2015)

Bulgaria to fully liberalise power market in early 2016 - energy min Bulgaria is scheduled to have a fully operational free power market by the beginning of 2016, the country's energy ministry said on Tuesday. The liberalisation of Bulgaria's power market is a top priority for the government, the energy ministry said in a press release. In the beginning of 2014, the state-owned Bulgarian Energy Holding (BEH) set up the Independent Bulgarian Energy Exchange (IBEX) which holds a licence to operate the electricity exchange in Bulgaria for a period of 10 years. In April, IBEX and power market operator Nord Pool Spot signed a cooperation agreement aimed at setting up a day-ahead power exchange in Bulgaria. In August, the World Bank Group signed a deal with BEH to consult it on the liberalisation of country's energy market.
Source: Capital (30.09.2015)

South Stream Bulgaria's costs grow in 2014 Company South Stream Bulgaria, which was founded for construction of gas pipe on the Bulgarian territory, continues to operate though the project was informally stopped by Russian president Vladimir Putin back in the end of 2014. The company’s financial report for 2014 shows that for a second consecutive year it made expenses to the amount of BGN 4-5 million. Thus they logically turn into a loss to the amount of BGN 4.76 million. Costs for acquisition of assets are calculated at BGN 40 million, as compared to BGN 13 million one year earlier. At the same time there is no official opinion about the fate of the project by Gazprom. In South Stream Bulgaria equal shares are held by Bulgarian Energy Holding (BEH) and Gazprom. From the financial statements of the company it becomes clear that the basic cost of the company is accumulated for staff salaries, which in 2014 increased from 23 to 36 collaborators. At the end of 2014 the company has signed contracts relating to the design and construction of the pipeline in Bulgaria worth BGN 32 million. The money went for preparation of the EIA plot plan and technical design and other pre-investment activities. The company was founded in 2010.
Source: Capital (05.10.2015)

2 banks apply to give EUR 650 million loan to BEH Two banks have issued applications in the BEH’s procedure of providing loan payment to the American TPPs. In the other procedure for choice of investment advisor on issuing of bonds applicants are 12. This marks completion of the first stage of the two procedures. Thus the second stage is pending. Participants who will make it to the second round will present bounding offers. After opening and assessment of offers economically most advantageous proposal for funding will be chosen. BEH is looking for a loan of EUR 650 million, as part of it will be used by NEC to pay off with AES Maritsa East ² and ContourGlobal Maritsa East 3. Obligations of the state company go over BGN 900 million. If they are not paid, negotiated agreed discount in the price of electricity will not enter into force. In addition NEC will not be able to save BGN 1 billion. This saving is planned to be realized within in the next ten years.
Source: Monitor (07.10.2015)

China's ICBC Bank Offering Loan to Bulgarian Energy Holding The Industrial and Commercial Bank of China (ICBC) is likely to become the single company to make a binding offer th the Bulgarian Energy Holding (BEH) as the energy structure is looking for a loan of EUR 650 M to pay off debts. Capital Daily reports, citing its own sources, that ICBC, one of the world's biggest lenders, will be the only one admitted into the next stage where it will be able to place an offer, even though there was also a second candidate. BEH, a structure managing state-owned assets in the energy sector, is now committed to make the payments under a deal with the AES and ContourGlobal thermal power plants which was reached in the spring. Out of the five-year, EUR 650 M loan, some EUR 450 M will be earmarked for debts to the two companies. The holding's majority owner is the state, whose share exceeds 50 percent. Separately, BEH has launched a procedure looking for bridge financing in which 11 of the 20 candidates are expected to be shortlisted. It had made similar steps in 2013 to secure EUR 500 M in funding, but the sole bidder, Deutsche Bank, was later disqualified.
Source: 24 chasa (08.10.2015)

Washington puts pressure on Tsipras for the interconnector with Bulgaria The delayed construction of the interconnector between Greece and Bulgaria IGB has bestirred US diplomacy, as reported by the Greek daily Kathimerini. The interconnector is designed to reduce Bulgaria's dependence on Russian natural gas, with the prospect of being extended to Romania, Hungary and possibly the countries around the Baltic Sea. Special envoy and coordinator for US international relations in the field of energy Amos Hokstayn has been on a visit to Athens since yesterday and has already met with Greek State Minister Nikos Pappas and US Ambassador to Greece David Pierce. Early this morning he will meet with Greek Minister of Environment and Energy Panos Skourletis and a trilateral meeting with the participation of Bulgarian Energy Minister Temenuzhka Petkova will take place immediately afterwards. Kathimerini writes that the visit of Amos Hokstayn aims to prepare the official visit of US Secretary of State John Kerry to Athens in mid-November. The interconnector between Greece and Bulgaria is key to US diplomacy because of the opportunity provided to the Balkan countries to stop being dependent on the natural gas of the Russian Gazprom company.
Source: Standart (15.10.2015)

Bulgaria plans to raise state guarantee for IGB Pipeline to 110 mln euro Bulgaria plans to increase the state guarantee for the Interconnector Greece-Bulgaria (IGB Pipeline) project by EUR 30 million to EUR 110 million euro, Bulgaria's energy minister said on Thursday. The final investment decision on the interconnector with Greece is expected to be signed within a month as several technical details remain to be sorted out, which will take two to three weeks, Temenuzhka Petkova said at the Fourth EU–Southeast Europe Summit. The gas link between Bulgaria and Romania might be ready in the beginning of 2016, Petkova also said, adding that a 2 km stretch of the pipeline along the Danube riverbed remains to be completed. The 25 km gas link will connect the southern Romanian village of Comasca with Marten, in northern Bulgaria, under the Danube river. The project includes the construction of a 15.4 km overland pipeline in Bulgaria and another 7.5 km overland in Romania. The IGB Pipeline, which will be 182 km long, will link the northeastern Greek city of Komotini with Stara Zagora in Bulgaria. It is estimated to cost 220 million euro. The gas link will carry 3 billion cu m of natural gas annually in its initial stage and will have a maximum capacity of 5 billion cu m per year. It will eventually be connected to the Trans Adriatic Pipeline, carrying natural gas from the Caspian Sea to Europe through Greece. The IGB Pipeline is an essential part of a vertical gas corridor connecting Bulgaria, Greece and Romania, which the three countries have committed to develop.
Source: Duma (19.10.2015)

Banks demand state guarantees for Bulgaria energy loan-sources Plans by Bulgaria's state energy holding company to raise up to 650 million euros ($713 million) in debt have hit a stumbling block after lenders asked for state guarantees, two sources familiar with the situation told Reuters on Thursday. BEH is seeking to raise bridge financing ahead of a bond issue. It has said it has received two binding offers from banks to lead manage the bond issue, without elaborating. The company needs the proceeds urgently to enforce a deal with two U.S. thermal power producers AES and ContourGlobal, under which the two will lower the price at which they sell their output to BEH's unit, public power provider NEK. After 12 banks initially expressed an interest in lending the money and organising the bond, BEH has received two offers. One is from a consortium of Citigroup, HSBC, Unicredit, Societe Generale and ING , while the other is from Banka IMI, the investment arm of Intesa Saopaolo, said the sources, who declined to be identified. The consortium has asked for state guarantees on the 500 million euros it is willing to provide as bridge financing to the bond, which should be issued nine months to a year after a deal is sealed. ADVERTISING Banca IMI has also asked for state guarantees and has offered only 65 million euros without, the sources said. Bulgaria's finance ministry has declined to extend such guarantees before the huge deficits in the energy system are properly addressed. "In this situation, either the finance ministry should agree to provide state guarantees, or BEH should re-launch the process, lifting the threshold of 500 million euros for the bridge financing," the first source said. "If the ministry allows state guarantees, the deal can be signed in a week. If not, all 12 banks, that have expressed (interest as) initial bidders may be invited to file bids again," the second source said. BEH has also sought to arrange a loan with a bank, but has not received any binding offers and has given up on that option. In September, Fitch credit ratings agency downgraded BEH's long term rating to BB- with a negative outlook, predicting weak credit ratios due to a widened tariff deficit at NEK. NEK's total dues have jumped to 3.7 billion levs, leaving a 1.4 billion tariff deficit, Energy Minister Temenuzhka Petkova said last month, pointing out that the deal with AES and ContourGlobal aimed to slash that shortfall.
Source: investor.bg (30.10.2015)

BEH Loan Problems Will Not Affect Electricity Price, Regulator Says Energy and Water Regulatory Commission (EWRC) Chairman Ivan Ivanov said on Wednesday that, for the time being, there is no reason to expect an electricity price hike due to the problems with the future loans to be taken out by the Bulgarian Energy Holding (BEH). Ivanov said the government's refusal to provide a guarantee for the BEH loans should not push up the electricity price for now, "but we will watch the situation." The loans are partly intended to finance a debt settlement between the National Electricity Company (NEK) and the Maritsa East 1 and 3 thermal power plants as a condition for revising the plants' long-term electricity sale agreements with NEK, which will help NEK reduce its financial deficit. In his remarks to journalists after an open EWRC meeting, Ivanov also said the European Commission is still expected to determine whether the two Maritsa East plants have been receiving unlawful state aid. Discussing another question, he said the regulator is considering whether to let the future Bulgarian independent electricity exchange adopt Central European Time for its own purposes. On November 11, EWRC will respond to the proposals made during a public discussion on the electricity exchange. The Bulgarian independent electricity exchange is to go into operation at the beginning of 2016 after a trial period in December 2015. The World Bank is expected in the middle of November to deliver an interim report suggesting the most appropriate model for the functioning of the exchange.
Source: Monitor (05.11.2015)

Bulgaria and Greece ready to sign the agreement on the gas interconnector The date is to be set for the signing of the final investment decision on the gas interconnector between Bulgaria and Greece, after shareholders have agreed on the clauses of the development contract, Energy Minister Temenuzhka Petkova revealed at the Energy Infrastructure Forum in Copenhagen, Denmark. The pipeline is to be built by a joint venture of the Bulgarian Energy Holding (BEH) and Grrece's IGI Poseidon. Bulgaria has already committed to issuing guarantees worth BGN 215 M (EUR 109 M) for the ICGB project in 2016. Brussels will also finance Bulgaria's interconnector to Greece, leading to Komotini, according to previpus information from PM Boyko Borisov. The project's aim is to improve the energy diversification and security of both the participating countries and the entire EU. In Borisov's words, within the newly established Energy Union, Bulgaria will receive political and logistical support for the establishment of regional energy interconnections and its gas hub, the brainchild of the Bulgarian PM.
Source: Sega (11.11.2015)

Bulgaria's NPP Kozloduy 9-mo net profit jumps 32% The operator of Bulgaria's sole nuclear power plant (NPP) Kozloduy said its net profit rose 32% to BGN 118 million in the nine months through September. Total revenues edged up 3% to nearly BGN 644 million through September while electricity-related revenues decreased by 1.6% to some BGN 625 million. The company’s nine-month operating profit was flattish at BGN 125 million. Kozloduy NPP's investments in the period under review totalled BGN 61 million. Kozloduy NPP, a subsidiary of state-operated Bulgarian Energy Holding, remained with two operational reactors - Units 5 and 6 - of 1,000 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. In April 2012, the government in Sofia decided to add another 1,000 MW unit to the plant. The NPP's planned Unit 7 is seen operational after 2025 due to the project's long synchronisation procedures, the country's electricity transmission system operator said in March.
Source: Duma (11.11.2015)

Bulgarian Energy Holding to seek unsecured syndicated loan of at least 500 mln euro State-owned Bulgarian Energy Holding will seek a syndicated loan of at least EUR 500 million, to be followed by a bond issue of the same size as the loan. The decision comes after BEH decided to cancel a procedure seeking a combined EUR 650 million in a bridge loan and a bond issue. Talks with candidates to provide the funding will open immediately and are expected to be completed in two weeks. The proceeds of the loan or the bond would go to cover debt accumulated by one of BEH's units to two U.S.-owned thermal power plants. In September BEH said it is inviting preliminary bids for an investment consultant on a 650 million euro bond issue, or for a bank to provide it with a loan of the same amount. In August, U.S. companies AES and ContourGlobal signed agreements with the National Electricity Company. BEH's subsidiary, on a decrease in the prices at which it buys electricity produced by the two companies' thermal power plants. For its part, NEK pledged to pay back its overdue liabilities to the two plants. NEK owes the two plants around BGN 900 million in total.
Source: 24 chasa (13.11.2015)

BEH Terminates Open Tenders for Selection of Investment Consultant, Financing Institution The Bulgarian Energy Holding (BEH) announced on its website on Wednesday that it terminated procedures launched on September 3 for an investment consultant and a financing institution. BEH said it "terminated an open tender with pre-selection for the selection of an investment consultant for the issuance of corporate bonds, and an open tender with pre-selection for the selection of a financing institution(s) for raising a loan/syndicated loan." On November 12, Energy Minister Temenouzhka Petkova told Parliament's Energy Committee and Committee on supervision of the energy and water regulator that BEH would decide on that day to terminate the procedure for selection of bank institutions which can provide a loan for dealing with intercompany obligations in the energy sector. Instead, direct negotiations would be held in the next two or three weeks with the banks which showed an interest in the procedure. The National Electricity Company (NEK) needs the loan to pay off its debt of nearly 900 million leva to US-owned AES Maritza East 1 TPP and ContourGlobal Maritsa East 3 TPP, which themselves owe close to 350 million leva to the Maritza East Mines. This will make possible the entry into effect of an agreement on a 100 million leva annual reduction of the price that NEK pays the US-owned TPPs for availability. Twelve of the world's largest banks have shown interest on condition the loan is government-guaranteed. BEH and the Energy Ministry will negotiate with them to provide the required financial resources of 650 million euro.
Source: Monitor (19.11.2015)

Bulgaria Expects Offers for EUR 650 M Loan to Energy Holding Co. in 2-3 Weeks The Bulgarian Energy Holding company has invited potential lenders to extend a loan of up to EUR 650 M, BNR radio broadcaster reported on Monday. Deputy Energy Minster Zhecho Stankov told reporters on the sidelines of a gas conference in Sofia that invitations had been sent to 25 international financial institutions and loan offers were expected to be submitted within two or three weeks, according to BNR. Stankov, who is also BEH board member, said he hoped that the state-owned company will be able to secure the loan financing by the end of the year. BEH needs the money to enable its heavily indebted subsidiary National Electricity Company (NEK) to repay debt owed to the Bulgarian units of U.S.-based AES Corp. and ContourGlobal. Deputy Energy Minister Nikolai Nikolov told an energy forum in Sofia last week that BEH had decided to launch direct talks with banks over borrowing EUR 650 M after a tender to raise the funds collapsed. Bulgaria cancelled the tender procedure because both candidates, who submitted binding bids to arrange a bond issue and provide bridge financing ahead of it, had asked the government to extend state guarantees on the debt – a request denied by Finance Minister Vladislav Goranov in view of NEK's financial deficits.
Source: Monitor (24.11.2015)

Bulgaria Develops Its Natural Gas Market While Bulgaria is preparing to liberalize its electricity market completely, it is also beginning to develop a natural gas trading segment, Deputy Energy Minister Zhecho Stankov told a discussion on Monday. Stankov said this will allow the local market to improve and become integrated into those of neighbouring countries. With the construction of a natural gas distribution hub in Bulgaria, the country will acquire a functioning gas market, he predicted. The government has proposed a concept for the future gas hub in order to fulfill one of its main goals: the goal of diversifying gas supply sources and routes, he recalled. When the project is carried out, the country will have at least three different sources of gas supply and will thus fulfill one of the most important principles of the European energy market. In addition to importing gas from Russia and via the Southern Gas Corridor, it will also rely on local extraction, the Deputy Energy Minister noted. He pointed out that last week the European Commission included the Bulgarian gas hub concept on a list of projects of shared interest, which means Sofia can expect funding from the EU. Energy and Water Regulatory Commission (EWRC) Chairman Ivan Ivanov said the liberalization of the gas market is of key importance for the whole society.
Source: Dnevnik (24.11.2015)

Sofia municipality prepares the concession of Toplofikacia Sofia The future concessionaire of Toplofikacia Sofia EAD will have to pay an initial contribution of BGN 200 million of the company's liabilities to the Bulgarian Energy Holding (BEH), according to provisions of the Sofia Municipality. It authorized the heating company to conclude an agreement for a new rescheduling of its debt to the Bulgarian Energy Holding, which is BGN 503 million accumulated since 1998. Furthermore, BEH claimed another BGN 50 million that Toplofikacia Sofia does not recognize. The largest district heating company in the country servicing the whole capital, is in poor financial condition for years, and in 2014 the loss was BGN 57 million.
Source: Capital (03.12.2015)

Nine Banks Show Interest in Lending up to EUR 650 M to Bulgaria’s BEH Nine banks have confirmed interest in lending up to EUR 650 BGN to the state-owned Bulgarian Energy Holding (BEH) company, Energy Minister Temenuzhka Petkova has said. The energy group is seeking the money to enable its indebted subsidiary National Electricity Company (NEK) to repay debt owed to the local units of U.S.-based AES Corp. and ContourGlobal. The two coal-fired power plants, AES Galabovo and ContourGlobal Maritsa East 3, owe BGN 325 M to lignite coal mines in Maritza East basin. The plants’ owners have agreed to cut the price at which they sell their electricity to NEK once they get repaid by the company. The Bulgarian authorities are currently preparing a timetable for negotiations with the interested lenders, Petkova said at an energy conference in Sofia on Monday. Confidentiality agreements have been signed with the nine banks and negotiations with each of them over loan terms are about to begin. The lenders were not expected to seek Bulgarian government guarantees for the debt, Petkova added. Bulgaria decided to launch direct talks with banks over lending to BEH after BEH’s attempt to raise funds for repaying NEK’s debt to the two coal-fired power plants through a bond issue failed last month. Both candidates, who had submitted binding bids in BEH’s tender for arranging a bond issue and extending bridge financing ahead of it, had sought government guarantees for the debt. Finance Minister Vladislav Goranov, however, had rejected the demand in view of NEK’s peristent financial deficits. Petkova said at the start of the energy conference on Monday that NEK has slashed by nearly a third its operating loss for the first nine months of 2015. NEK posted operating loss of BGN 218 M for the January-September period, a decrease compared with BGN 324 M loss a year earlier, said Petkova.
Source: Monitor (08.12.2015)

Bulgaria's IBEX power exchange signs up first participant The yet-to-go-live Independent Bulgarian Energy Exchange (IBEX) said it has signed the first contract for participation in the organized power market. By signing the contract with Maritsa East 2, the largest thermal power plant in Bulgaria has become the first real participant in this market segment, IBEX said in a press release on Tuesday. Maritsa East 2, a subsidiary of the state-run Bulgarian Energy Holding, has an installed capacity of 1,600 MW. IBEX was developed in partnership with Norwegian-based Nord Pool Spot. Elsewhere in the region, day-ahead power exchanges are also planned in Croatia and Serbia. The launch dates for both projects have been pushed back to early 2016 after initially targeting to go live in late 2015. The Croatian power exchange project, CROPEX, also involves Nord Pool Spot.
Source: investor.bg (10.12.2015)

Bulgaria, Greece ink final investment agreement on gas interconnection Shareholders in the joint project company ICGB – Bulgarian Energy Holding EAD and IGI Poseidon S.A. will sign a final investment decision on the construction of intersystem gas connection Greece – Bulgaria. The ceremony will be held on Thursday, December 10, at 12 pm in the Council of Ministers at the presence of Deputy Prime Minister for European Funds and Economic Policy Tomislav Donchev, Energy Minister Temenuzhka Petkova and Energy Minister of Greece Panos Skurletis. Prime Minister Boyko Borisov is also invited to attend the ceremony. Signing the final investment agreement initiates a process of construction of the interconnector between Greece and Bulgaria. Gas interconnection Greece - Bulgaria is designed to transport natural gas between the two countries by connecting to the national gas network of Bulgartransgaz EAD, near the town of Stara Zagora and the transmission network of DESFA S. A. - Greece near the town of Komotini. The project is implemented by a joint investment company ICGB – Bulgarian Energy Holding EAD (50%) and Greek investment company IGI Poseidon S.A. (50%). Shareholders with equal shares in IGI Poseidon are DEPA, Greece and Edison, Italy. The gas connection has a length of 140 km on the Bulgarian territory. The planned initial capacity of the interconnector is 3 billion square meters / year, and a maximum capacity of up to 5 billion square meters / year in the next stage. The project received positive decisions on assessment of environmental impact (EIA) by the competent authorities of the Bulgarian and Greek territory.
Source: Standart (10.12.2015)

Bulgaria's Bulgargaz proposes 2.1% cut in wholesale gas prices in Q1 Bulgarian gas monopoly Bulgargaz said on Thursday it has proposed to the country's energy regulator a 2.1% decrease in the price at which the company sells natural gas to its wholesale clients in the first quarter of 2016. The tariff of 406.49 levs per 1,000 cu m proposed by Bulgargaz does not include Value Added Tax and excise duties, the company said in a notice on its website. The adjustment in the wholesale tariff, made on a quarterly basis, must be approved by the energy regulator to take effect. Bulgargaz is a subsidiary of the state-owned Bulgarian Energy Holding. Bulgaria imports almost all the natural gas it needs from Russia through a pipeline crossing the territories of Ukraine, Moldova and Romania.
Source: Sega (11.12.2015)

Bulgaria Gives Name 'Balkan' to Its Gas Hub Project Bulgaria's government announced the gas hub Bulgaria was intending to build near Varna, at the Black Sea, would bear the name "Balkan". A cabinet statement coincides with a meeting of Energy Minister Temenuzhka Petkova and Klaus-Dieter Borchardt, Director Internal Energy Market at the European Commission's Directorate-General for Energy. It also reads that Borchardt and Bulgaria's Deputy PM for economic development, Tomislav Donchev, will head a work group set up last year to study the gas hub project. The group will work to address challenges facing the regulatory framework and commercial environment to enable an easier connection of Bulgaria to the rest of Southeast Europe. Borchardt is quoted as saying, on behalf of EU Energy Commissioner Miguel Arias Canete, that Brussels is interested in the development of the gas sector in Southeast Europe to provide supplies to every country in the region. Bulgaria came up with the gas hub proposal last December, after Russia abandoned the South Stream project which was to carry gas to Central Europe via Bulgaria and Serbia.
Source: profit.bg (11.12.2015)

Bulgaria President to open Sofia Tech Park Bulgarian President Rosen Plevneliev will open the first scientific and technological park in Bulgaria - Sofia Tech Park, at an official ceremony on Friday, the press office of the Bulgarian Head of State announced. Along with the Bulgarian President, the inauguration of the first innovation eco-system in Bulgaria will be also attended by the President of the Slovak Republic Andrej Kiska, Bulgarian Prime Minister Boyko Borisov, Prime Minister of the Free State of Bavaria Horst Seehofer, European Commissioner for Regional Development Corina Cretsu, Bulgarian Economy Minister Bozhidar Lukarski and Executive Director of Sofia Tech Park Elitsa Panayotova. The ceremony will be held at the Innovation Forum building of Sofia Tech Park. The forum will be symbolically named by President Rosen Plevneliev and Prime Minister Boyko Borisov after the great inventor of Bulgarian origin Prof. John Atanasov. Bulgarian President Rosen Plevneliev and his Slovakian counterpart Andrej Kiska will also symbolically inaugurate a street within Sofia Tech Park, which will be named after Slovakian inventor Jozef Murgas. After that the two Presidents will visit the building of the Incubator. At 1 p.m. Mr Plevneliev and Mr Kiska will set the start of the official panel within the Role of Tech Parks for the Development of Entrepreneurship and Innovations conference. The two-day discussion will be dedicated to the policies in support of innovations and the role of the scientific-technological parks for the establishment of economy based on knowledge.
Source: Capital (11.12.2015)

EC Accepts Commitments by BEH to Open up Wholesale Electricity Market The European Commission announced on Thursday it has adopted a decision that renders legally binding the commitments offered by Bulgarian Energy Holding (BEH) to end competition restrictions on Bulgaria's wholesale electricity market. Commissioner in charge of competition policy, Margrethe Vestager, said: "Territorial restrictions that divide energy markets along national lines prevent us from achieving a true European Energy Union. Today's decision will end these restrictions in Bulgaria and make the Bulgarian wholesale electricity market more open and transparent." The Commission had concerns that BEH may have abused its dominant position on the market for the wholesale supply of electricity at freely negotiated prices (therefore non-regulated prices), in breach of EU antitrust rules (Article 102 of the Treaty on the Functioning of the European Union - TFEU). In particular, the Commission investigated clauses in electricity supply contracts concluded between BEH's production subsidiaries and third parties, such as traders, that impose restrictions on where these third parties could resell the electricity bought from BEH. To address the Commission's concerns, BEH has committed to offer certain volumes of electricity on an independently-operated day-ahead market on a newly-created power exchange in Bulgaria. Power exchanges ensure anonymous trading of electricity (i.e. the seller cannot trace the electricity it sells). This prevents the seller from enforcing territorial restrictions on resale. More specifically, BEH will set up a power exchange with the assistance of an independent third party with expertise in the area, and transfer control of the ownership of the new power exchange to the Bulgarian Ministry of Finance. These measures will ensure the independence of the power exchange.
Source: BTA (11.12.2015)

Sample deals for 1074.5 MWh of electricity in the first day of the stock exchange 1074.5 MWh of electricity were traded in the first session of the energy market, which was held from 12.23 am to 13 am Friday. This is 0.9% of the winter consumption, which is an average of 120,000 MWh per day. The head of the independent Bulgarian Energy Exchange Konstantin Konstantinov said that the relatively good liquidity of the stock market will occur in the trading of 5% of the electricity used in this country. He predicted that this would happen in the first days of live trading in mid-January. The first session was a test. For the first and last time 17 companies announced public offers with prices and quantities for each hour of the day. They ranged from BGN 30 to BGN 83 per MWh. These were not the prices at which they will offer during a real session. Trading volumes were 1133.6 MWh, the only seller was the state-owned Maritsa East 2. The plant reached BGN 74.56 for MWh.
Source: 24 chasa (12.12.2015)