BEH buys Nabucco Bulgaria and prevented it from liquidation Bulgarian Energy Holding (BEH) has bought the international company Nabucco Gas Pipeline International’s subsidiary in Bulgaria, preventing it from liquidation, and its commercial activity in the country was restored. BEH did not state what the price of the transaction was, because they had no right to do so without the consent of the seller, but the agreement between the two companies, published in the Commercial Register can be concluded at a minimum of about BGN 9.4 million as that is the capital of the company. Nabucco Bulgaria was owned by an Austrian-registered company that was supposed to build the gas pipeline Nabucco for alternative supplies of natural gas through Turkey, Bulgaria, Romania and Hungary to the Austrian gas hub Baumgarten.
Source: mediapool.bg (30.01.2017)

BEH freeze your company for industrial investments Operations of the established three years ago Energy Investment Company as a subsidiary of Bulgarian Energy Holding (BEH), which had to realize the plans of the government of Plamen Oresharski for reindustrialisation of Bulgaria with state funds, are frozen. The news was announced by a representative of BEH. The company was registered on January 31, 2014 as property of BEH to carry on investment business and intellectual property transactions, to develop and introduce new technologies, entrepreneurship, consulting, engineering and other activities in the field of energy. Launched at that time idea of the then Minister of Economy and Energy Dragomir Stoynev was for BEH to expand into an industrial holding having bought the assets of two bankrupt companies - Remotex- Radnevo, which repairs equipment of the state-owned Mini Maritsa Iztok and fertilizer factory Chimco in Vratsa.
Source: mediapool.bg (03.02.2017)

Dep.-Energy Minister Becomes Board Member of Bulgaria’s National Electricity Company Konstantin Delisivkov, deputy-minister of energy in the interim government of Ognyan Gerdzhikov, will replace Hristo Georgiev at the board of directors of Bulgaria’s power incumbent National Electricity Company (NEK). Delisivkov’s appointment was announced on Tuesday by its parent-structure Bulgarian Energy Holding (BEH), along with two more changes at other BEH subsidiaries. Petyo Ivanov, CEO of the holding, will replace Jacklen Cohen at the board of directors of Kozloduy NPP. Furthermore Nikolay Pavlov, currently acting as interim energy minister, will be replaced by Stoyan Yanchev at the board of directors of gas incumbent Bulgargaz. The changes are meant to ameliorate the management of the companies in order to achieve financial stability. Although NEK has seen some improvement in its financial state, in December the government of Boyko Borisov approved EUR 601.6 million state-aid earmarked to secure the payments of the power incumbent, related to the Belene NPP arbitration case with Russia’s Atomstroyexport. In December Standard & Poor's Ratings Services (S&P) confirmed its 'B' long-term corporate credit rating on NEK, reflecting on the utility's financial dependence on regulatory decisions.
Source: Monitor (08.02.2017)

ESO increased its profit to BGN 69.3 million The Electricity System Operator (ESO), which is also part of the structure of the Bulgarian Energy Holding (BEH), has continued to show better financial results. For 2016 the profit of the company was BGN 69.3 million, which is BGN 6.2 million more than in the previous year. According to the company's report in May 2016 its capital was increased by BGN 24.3 million, reaching BGN 90.3 million. In mid-August the European Commission approved the allocation of EUR 29.9 million to ESO’s project for the construction of transmission lines Dobrudja - Burgas under the scheme "Connecting Europe". The EU funding covers 50% of costs. The remaining financing will be by funds of the company. This is ESO’s second project, which receives grant financing from the European Commission. In 2015, Brussels approved another EUR 30 million to build a power line from the substation Maritsa East to substation Burgas.
Source: Capital (16.02.2017)

New EU Regulation Threatens Bulgaria’s Thermo-electric Plants Recently proposed amendments to EU's Industrial Emissions Directive (IED, 2010/75/EU) regarding the industrial CO2 emissions, including that of thermoelectric plants, is threatening to lay off 10,000 Bulgarians employed in the energy sector. The unrest follows a decision of the European parliament of 15th of February to accept a proposal on the reform of the EU Emissions Trading System (ETS). The proposal is meant to ensure a more cost-effective system of emission reductions and an overall increase of low-carbon investments across the EU. The leadership of Bulgaria's Chamber of Mining and Geology, Maritsa-Iztok Mines EAD, and energy experts have come up with a common declaration against the proposed amendments to the Best Available Techniques (BAT) reference documents, the so-called BREFs. The amendments set stricter permit conditions for CO2 and other greenhouse gases emitted by industrial installations. The problems is that none of Bulgaria's thermal plants and mining installations can comply with the new regulations, and their upgrade is going to cost hundreds of millions of BGN.
Source: 3e-news (22.02.2017)

NEK’s loss reached BGN 126.4 million in 2016 National Electricity Company (NEK) reported a loss after tax of BGN 126.4 million for 2016. This is an impressive increase of almost 42% over the previous year, when the negative result was BGN 82.2 million, according to the preliminary annual financial report. The increase of the loss is mainly due to hike in costs under "other", which in 2016 reached BGN 582.9 million, an annual increase of about 700%. But the report is not clear what caused those costs. Another reason for the poor financial performance of the company was the increased financial costs, which last year reached BGN 104 million against BGN 64 million in 2015. Perhaps this increase is due to the interest that NEK must pay for the new bond issue from the middle of 2016, issued by the owner of the company Bulgarian Energy Holding (BEH).
Source: Capital (23.02.2017)

Bulgaria's Bulgargaz 2016 net profit rises Bulgarian state-owned natural gas supplier Bulgargaz said its net profit rose 80% to 36.7 million levs ($20 million/18.8 million euro) in 2016. however, Bulgargaz's total revenue fell to 1 billion levs in 2016 from 1.4 billion levs a year earlier, the company said in an annual financial report. The company sold 3 billion cu m of gas last year, up from 2.65 billion cu m in 2015. The company noted that in 2016 the cost of natural gas sold, representing 96.6% of total expenses, was 30.36% lower year-on-year. Bulgargaz' total assets decreased to 337.2 million levs in 2016 from 456.6 million levs in 2015. Bulgargaz is part of the Bulgarian Energy Holding (BEH), which pools all state-owned energy assets.
Source: Capital (06.04.2017)

Sofia Prepares Statement on Gazprom’s Obligations Minister of Energy Nikolay Pavlov informs that at the moment the Bulgarian state – owned companies Bulgarian Energy Holding, Bulgargaz and Bulgartransgaz are working hard on the preparation of detailed analyses of the proposals for commitments, submitted by Gazprom at the EC, according to BNR. Today representatives of the ministry and the three energy companies will take part in a discussion of the topic at an international gas forum in Warsaw. On 13 March 2017 the EC invited all interested member – states to present within 7 weeks statements on the commitments, offered by Gazprom, sent as a response to the EC concerns about the lack of competition on Central and South-East Europe’s gas markets. The anti-monopoly court case of the EC is related with the gas markets of 8 EU member-states-Bulgaria, the Czech Republic, Estonia, Latvia, Lithuania, Poland, Hungary and Slovakia.
Source: Standart (21.04.2017)

Bulgarian Prosecution Raids Energy Watchdog on Malfeasance Accusations The Office of Bulgaria’s Prosecutor General announced on Monday it has raided the headquarters of the Energy and Water Regulatory Commission (EWRC) on suspicion on malfeasance. An investigation will be launched today, aiming to find out whether the energy watchdog fulfilled its lawful duties of controlling natural gas distribution companies regarding investments pledged in their business plans. The prosecution said it will also look into a merger of companies in Sofiagas, later renamed to Overgas Mrezhi. There are suspicions that the EWRC helped keep natural gas prices at artificially high levels. The prosecution will also investigate a claim by privately held gas supplier Overgas Inc that state-run gas transport grid operator refused it access to the grid and Bulgaria’s sole underground gas storage at Chiren. The prosecution considers that the energy watchdog did not react accordingly which could have contributed to the launch of an infringement procedure by the European Commission against state-owned Bulgartransgaz and Bulgargaz. Mr. Sasho Donchev, CEO of Overgas, came under scrutiny last week, when he alleged Prosecutor General Sotir Tsatsarov pressured him to abandon support for the political formation 'Yes,Bulgaria' ('Da, Bulgaria') Last but not least, with the help of the National Security the prosecution said it will look into the latest pricing decisions of the EWRC regarding natural gas, district heating, and water, the latter only in Sofia. Bulgaria's National Security Agency has already seized paperwork from the EWRC.
Source: 3e-news (25.04.2017)

The CPC did not find a violation of NEK's controversial transactions The sale of electricity by the National Electric Company (NEK) for about BGN 200 million without auction and competition to certain companies is not an abuse of a dominant position, announced a decision of the Commission for Protection of Competition. The proceedings of the case was launched in the spring of 2015 following a complaint from EVN Trading, which is one of the licensed traders for trading electricity on the free market in Bulgaria. EVN claims that NEK’s behavior is discriminatory, because the company has provided all of its peak energy to a selected group of traders. In addition to the conclusion that the possibilities for import of such energy are not limited and the company has obligations to the regulated market for which a large part of its energy is destined, the CPC concluded that the company does not have a dominant position on the market and has not abused it.
Source: Capital (25.04.2017)

The state-owned Maritsa-East 2 is still in trouble TPP Maritsa East 2 has no working capital and money for investments, according to a report of the Energy and Water Regulatory Commission (KEVR). The state headquarters owes BGN 260.1 million to its principal - the Bulgarian Energy Holding (BEH). Maritsa East 2 has no money to serve its current obligations, and there is no money for investment. Although the financial statements of the companies are still not summarized, the state headquarters will end in 2016 with a loss of about BGN 94 million compared to BGN 72 million a year earlier. The main reason for the worsened financial result is reduced sales revenue, which have dropped by 14%. The state-owned company’s revenues shrank to BGN 536.4 million compared to BGN 626.5 million a year earlier. The forecasts for the following years is for reduction of losses - to BGN 29.1 million in 2017, and gradual profit in 2019. These plans depend on the increase of the revenues from the sale of electricity and cold reserve - all factors , which depend on KEVR and which directly affect the cost of household electricity.
Source: Sega (04.05.2017)

Bulgaria backs proposed EU antimonopoly settlement with Gazprom Bulgaria's caretaker government approved the position of the European Commission on a possible deal with Gazprom to settle the antitrust dispute on the Russian gas giant's practices in Central and Eastern Europe. "The interested Bulgarian companies, including the Bulgarian Energy Holding, Bulgargaz and Bulgartransgaz, are in constant contact with the European Commission for the purpose of receiving further information," the government said. The government also said it needs additional information about the option that could allow Gazprom to change the point of delivering gas to the Bulgarian border. "With regard to the security of gas supplies, it is important for Bulgaria that changes to the delivery points be discussed only after a thorough analysis as to whether guarantees exist regarding the volumes and routes of gas supplies as well as the transit fees," the government said. It added that ensuring direct gas supplies across the Black Sea to Bulgaria and Southeast European countries would contribute to the political and economic stability of the region.
Source: Darik Radio (04.05.2017)

Ownership of Bulgarian Energy Exchange to Be Transferred to Finance Ministry within Weeks The ownership of the Independent Bulgarian Energy Exchange (IBEX) is to be transferred from the state-owned Bulgarian Energy Holding (BEH) to the Ministry of Finance within a few weeks, deputy-energy minister Zhecho Stankov said during the Industry, Energy & Climate Change conference organized by Srednogorie Industrial Cluster in Sofia on Tuesday. “The transfer of the IBEX will not affect its development. By the end of the year the intraday trading segment should be launched. Furthermore, Bulgaria has already joined the Western Balkans Six initiative which will contribute to the development of the day-ahead market on a regional level”, Stankov commented for Publics.bg. Minister Stankov highlighted that the ownership transfer was one of the fixed engagements of BEH with the European Commission (EC) as a way for an infringement procedure to be ended. The transfer deadline has been pushed forward several times, with end date now set on July 31 2017.
Source: 3e-news (21.06.2017)

Bulgarian Stock Exchange exploring potential acquisition of IBEX The Bulgarian Stock Exchange (BSE) said on Friday it has initiated a procedure for exploring the options to acquire the Independent Bulgarian Energy Exchange (IBEX) from its sole owner, state-owned Bulgarian Energy Holding (BEH) company. The transfer of ownership of IBEX was requested by the European Commission in 2015 to prevent abuse of a dominant position. "This [acquisition] will lead to greater transparency, will accelerate the process of liberalization and will ensure the sustainable development of electricity trade in the country," Vassil Golemanski, CEO of BSE, said in the statement. BSE and BEH will negotiate the terms of the potential deal following completion of a legal and financial-economic analysis of IBEX. The power exchange, which was developed in partnership with Norwegian-based Nord Pool Spot and launched at the beginning of 2016, is currently operating in a day-ahead mode. In March 2016, IBEX launched a centralised market for bilateral contracts, making possible the sale and purchase of electricity on a long-term basis. IBEX will launch intraday trade by the end of 2017, energy minister Temenuzhka Petkova said in May. BEH pools all state-owned energy assets. The company owns the main electricity generation facilities in the country as well as the electricity transmission grid and the gas transmission and transit networks.
Source: econ.bg (17.07.2017)

Govt gives nod to Bulgarian Energy Holding to sell IBEX to Sofia bourse Bulgaria’s government said on Wednesday it has given its approval to Bulgarian Energy Holding, which pools all state-owned energy assets, to sell 100% of the Independent Bulgarian Energy Exchange (IBEX) to the Bulgarian Stock Exchange (BSE). The sale will be carried out through direct negotiations based on an estimate provided by a licensed valuator, the government said in a statement. Following BEH’s request for an opinion, the European Commission has said the BSE is a more appropriate buyer of IBEX than the Ministry of Finance, the statement reads. The transfer of ownership of IBEX was requested by the European Commission in December 2015 to prevent abuse of dominant position. BEH committed to offer certain volumes of electricity on an independently-operated day-ahead market on a newly-created power exchange and transfer control of the ownership of the new power exchange to the Bulgarian Ministry of Finance. Under the Commission’s decision, dated December 12, 2015, BEH was given six months from the date of formal notification of the decision to transfer the ownership of IBEX’s capital to Bulgaria’s Ministry of Finance. The deadline was subsequently extended to October 2017, according to the government’s statement.
Source: Dnevnik (10.08.2017)

BSE acquires the energy exchange for BGN 5.2 million The Bulgarian Stock Exchange - Sofia AD will acquire Independent Bulgarian Energy Exchange (IBEX) EAD for the price of BGN 5.2 million. The amount has been agreed between the two companies and is to be approved at the Extraordinary General Meeting of Shareholders of BSE. BGN 4 million will be paid upon signing the contract for the transfer of 100% of the capital of IBEX and the rest of the sum amounting to BGN 1.2 million will be paid in three equal installments within the sixth, twelfth and eighteenth months after the transfer of shares. So far the energy exchange has been under the hat of the Ministry of Energy and the state-owned Bulgarian Energy Holding EAD. The Council of Ministers has already given the green light for the deal. The transfer is due to a European Commission case. It was discontinued after BEH promised to separate the energy exchange from its structure.
Source: money.bg (15.08.2017)

Bulgarian Stock Exchange Acquires Independent Energy Exchange for Lv 5.2 Mln Regarding the procedure for the acquisition of 100 per cent of the Independent Bulgarian Energy Exchange EAD's (IBEX) capital, an agreement has been reached between Bulgarian Stock Exchange - Sofia AD (BSE) and the Bulgarian Energy Holding EAD (BEH), as the sole owner of IBEX's capital, to transfer the capital of IBEX for the price of 5.2 million leva, BSE said Tuesday in a press release. Four million leva shall be paid upon signing the acquisition contract, while the rest of the sum, amounting to 1.2 million leva, shall be paid in three equal instalments at the end of the sixth, twelfth and eighteenth month after the shares transfer. The acquisition shall proceed, should the extraordinary general meeting of shareholders of BSE-Sofia approve it, the press release also said.
Source: Dnevnik (16.08.2017)

Entry-Exit Natural Gas Transit Tariffs to Cause Up to 2.4% Price Hike The new entry-exit natural gas tariffs system planned for introduction in Bulgaria on October 1 will result in end-price increase by some 0.37 – 2.4 per cent, an analysis by state-run gas transmission system operator Bulgartransgaz reportedly revealed. These data were announced by the Bulgarian Ministry of Energy following an entire day of talks with large industrial consumers on the expected effects of the new tariffs system. By 18.00 EET on Tuesday no agreement was reached by the two sides. “It is very important for us that Bulgarian industry is developed in market conditions and that its competitiveness is guaranteed”, Bulgarian energy minister Temenuzhka Petkova said following the meeting. Currently Bulgaria has a fixed fee for gas transport via the Bulgartransgaz network amounting to BGN 19.73/1,000 cub. m (EUR 10.09/1,000 cub. m), VAT not included. The entry-exit model was devised five years ago. Bulgartransgaz said that the new tariffs system better reflected actual service costs and grid investments. Even though the entry-exit system’s introduction as of October 1 was backed by the State Energy and Water Regulatory Commission (EWRC) against pleas by the industry citing gas price steep increase concerns, the Bulgarian energy regulator is to inspect the calculations of Bulgartransgaz once more on September 11. A new round of talks with the industry will take place afterwords, the energy ministry said in a press release.
Source: 3e-news (07.09.2017)

Bulgaria, Greece, Serbia to Cooperate for Regional Gas Market Liberalisation Bulgaria, Greece and Serbia will be cooperating on gas projects that would increase security of supply in the region. Bulgarian energy minister Temenuzhka Petkova and her Greek and Serbian counterparts Giorgos Stathakis and Aleksandar Antic met on Thursday in Alexandroupoli, Greece, during an oil and gas forum, to discuss gas sources diversification for the region, the Bulgarian energy ministry said in a statement. Minister Petkova said that talks are underway with the European Commission so that additional financing for the Greece – Bulgaria gas interconnector (IGB) could be made available. At European Union level, the IGB Project has already obtained consistent political and financial backing. The project is subject of EU financial support through the European Energy Program for Recovery (EEPR) to the amount EUR 45 million. The three ministers also discussed the planned Vertical Gas Corridor, the Alexandroupoli LNG terminal and the Bulgaria – Serbia gas interconnector, along with another planned mega project – Bulgaria’s Balkan gas hub, with minister Petkova calling it a “European project”. “We are convinced that Greece and Serbia will play a vital part in the construction of the European gas hub Balkan”, Petkova said. The Balkan gas hub has been announced by Bulgarian PM Boiko Borissov a few years ago, with more agitation around it recent months, leading up to its presentation to U.S. congressmen by Borisov himself in end-August. Use of South Stream gas pipeline infrastructure and a direct link to its subsituting project - the Turk Stream, have all been launched as ideas for the Balkan gas hub realisation. The project has been reported to have the blessing of the European Commission for Russian gas to flow towards it. /publics.bg
Source: Other (08.09.2017)

18 Bulgarian companies in a European ranking 18 Bulgarian companies are among the 500 largest companies in Central and Eastern Europe in 2016 according to the authoritative annual rating of the international credit insurer Coface. Companies are mainly selected by turnover, but additional data such as number of employees, the range of companies, sectors and markets are also taken into account. A leading Bulgarian company in the ranking in 2016 is the Bulgarian Energy Holding, which holds 25th place. Lukoil Neftochim Burgas is 45th and Aurubis Bulgaria is 78th. The rest are NEK, Lukoil Bulgaria, Kaufland Bulgaria, CEZ Elektro, Advance Properties, Express Logistics and Distribution, Bulgargaz, Daphna Group, OMV Bulgaria, Sopharma, BTC , Kozloduy NPP, Saxa, Huvepharma and Astra Bioplant. The last two are listed for the first time. Ten of the companies, including the first 4, go down the list compared to the previous year due to a decline in their turnover. The largest number of companies in the Coface ranking is from Poland - 168 companies, followed by Hungary and the Czech Republic.
Source: 24 chasa (08.09.2017)

Bulgargaz Proposes 7.29 Decrease of Natural Gas Price in 4th Quarter of 2017 In accordance with the terms and conditions of the Ordinance on the regulation of natural gas prices Bulgargaz EAD, a subsidiary of the Bulgarian Energy Holding EAD, proposed to the State Energy and Water Regulatory Commission to approve a natural gas price of 343.22 BGN per thousand of cu.m. (exclusive of the prices for access, transmission, excise duty and VAT) for the fourth quarter of 2017, the company said. This is a decrease by 7.29 or 26.99 BGN per thousand of cu.m. in the third quarter.
Source: econ.bg (11.09.2017)

Bulgaria expects a EUR 330 mln fine from Brussels for gas monopoly A fine of EUR 330 million may be paid by Bulgaria in the European Commission's case against the country for abuse of a dominant position by the state-owned Bulgarian Energy Holding (BEH) and its subsidiaries Bulgargaz and Bulgartransgaz. The amount of the fine was first announced officially by the Minister of Energy Temenuzhka Petkova. She also said that the government would comply with Parliament's decision to appeal the case, instead of recognizing a violation in order for the sanction to be reduced. On Friday MEPs obliged Petkova not to recognize the violation. This contradicts the government's original plan to recognize the gas monopoly, and thus a 30% reduction in the sanction. According to lawyers, the decision of the deputies can be legally disregarded because the ministers are not obliged to observe the decisions of the parliament, but only those of the Council of Ministers. Petkova, however, announced that she would not take this opportunity.
Source: mediapool.bg (27.11.2017)

EC Continues Probe into Suspected Abuse of Dominant Position on Bulgaria's Natural Gas Market The European Commission is pressing on with an investigation, launched two years ago against the Bulgarian Energy Holding (BEH) and its subsidiaries over suspected abuse of their dominant position on the natural gas market in Bulgaria, a spokesperson for the Commission said on Monday. He added: "We sent a statement of objections in this case but I cannot at this moment announce any further steps." In March 2015, the European Commission sent a statement of objections to BEH, informing it of the Commission's preliminary view that BEH may have breached EU antitrust rules by hindering competitors access to key gas infrastructures in Bulgaria. The statement of objections was also addressed to BEH's gas supply subsidiary Bulgargaz and its gas infrastructure subsidiary Bulgartransgaz. The Commission has concerns that BEH and its subsidiaries may be preventing competitors from gaining access to the infrastructure they need in order to successfully compete on gas supply markets in Bulgaria. If the concerns are justified this behaviour would have reduced and continues to reduce competition in gas supply markets in Bulgaria. The fine that the EC may impose in the case may reach 330 million euro. This transpired from a Bulgarian National Radio interview Sunday with Energy Minister Temenouzhka Petkova. The interview came a couple of days after the national Parliament adopted a resolution requiring of the government to reject a deal with the European Commission, which would have slashed the fine by up to 30 per cent.
Source: 3e-news (28.11.2017)

Overgas prepares a new signal to Brussels for the gas network Overgas is preparing a new complaint to Brussels, which is related to access charges and the separation of the gas network in the country for transit and domestic use. This was announced by the CEO of Overgas Networks Svetoslav Ivanov. The introduced model contravenes Regulation 715 and favors Gazprom Export, the company said and expects European Commission (EC) to file a case on this as well. At the end of last week it became clear that Bulgaria will be fined by the EC in the criminal procedure that was initiated after an appeal by Overgas in 2011. The fine will actually be paid by the Bulgarian Energy Holding (BEH), which has broken the rules and will be entered directly into the EC budget. The gas company itself will therefore seek compensation for the damages suffered in court.
Source: Capital (30.11.2017)

Bulgarian Energy Holding Will Seek Change of Commitments for Trade on Energy Exchange The Bulgarian Energy Holding (BEH) will approach the European Commission about a possible change in the commitments of state-run electricity companies to sell certain volumes of electricity on the day-ahead market of the Independent Bulgarian Energy Exchange. Participants in a meeting Wednesday, hosted by Energy Minister Temenouzhka Petkova, rallied around the idea. To avoid the payment of hefty fines because of BEH's restrictions on competition, the Kozloduy NPP, the Maritza East 2 thermal power plant and the National Electric Company (NEC) undertook to sell certain volumes of electricity on the energy exchanges According to data of participants in the market, the shortage of peak electricity is among the reasons for the hike of electricity prices on the free market while at the same time NEC reports that between 50 and 300 MW of the volumes it offers remain unsold. One of the ways to remedy the situation is to ask the European Commission that the volumes offered by the state energy companies be traded through long-term contracts. The request has been prompted by the latest amendments to the Energy Act under which the whole electricity output outside the regulated market will be sold through the energy exchange. Wednesday's meeting brought together representatives of state-run energy companies, the Energy and Water Regulatory Commission, electricity traders, employer organizations and trade unions who discussed the fears of the business about a possible increase of the price of electricity on the free market and looked for mutually acceptable decisions.
Source: Monitor (21.12.2017)