Bulgarian Energy Holding EAD-Sofia (04HA) Information provided by the company on Case AT.39849 – BEH Gas European Commission Decision, imposing a fine of EUR 77,068,000 on the company for abuse of dominant position on the Bulgarian gas market by Bulgarian Energy Holding EAD and its subsidiaries, Bulgargas EAD and Bulgartransgas EAD
Source: BSE (04.01.2019)

BEH's revenues have soared The Bulgarian Energy Holding (BEH) reported over 90% growth in revenues to BGN 312 million for the nine months of last year. For this period there was growth in the profit - before taxes it was BGN 137.7 million, or an increase of about 15% compared to a year earlier. This shows the company's report published by the finance ministry. The enormous increase in revenues is mainly due to the dividends paid by the BEH companies, the biggest contribution coming from the Kozloduy NPP. The sale of the energy exchange for BGN 5.2 million on the Bulgarian Stock Exchange also affected the revenues of BEH. The Maritza-Iztok Mines has contributed with a profit of BGN 3.5 million and has also transferred 50% of its dividend to BEH. Another state energy company - Bulgargaz - has recorded profit. Nevertheless, the company registered a drop in its net income to BGN 4.1 million for the nine months of 2018. For comparison, in the same period a year earlier they were almost BGN 20 million. NEK is also performing with a declining trend in its results. The company reported a negative financial result for the nine months amounting to BGN 153.4 million, compared to the same period in 2017, when the decline was by BGN 62.4 million. However, Bulgartransgaz and the Electricity System Operator show positive results, whose profit for the nine month was BGN 23.4 million.
Source: Sega (09.01.2019)

Expansion of Chiren Gas Storage Facility to Be Finished in 2024 - Energy Minister The expansion of the Chiren underground gas storage facility will be concluded in 2024; that is when the construction of the facility's underground and ground installations should be finished, Energy Minister Temenouzka Petkova said during Friday's Question Time in Parliament. She explained that three-dimensional field seismic studies are now being conducted at Chiren to determine the final version of the expansion. The expansion was delayed due to an appeal lodged by one of the participants in the public procurement procedure, Petkova added. Bulgartransgaz EAD signed a contract for the project on May 25, 2018 and is currently implementing it. Petkova also said that once the Southern Gas Corridor and the Interconnector Greece-Bulgaria (IGB) are finished, Bulgaria will be able to receive 1 billion m3 of Azeri gas, as envisaged in the 2013 agreement between Bulgargransgaz and the State Oil Company of Azerbaijan Republic (SOCAR). In her words, this is one-third of Bulgaria's natural gas consumption. The construction of the IGB should begin in two to three months, and it should be finished and put into operation by the second half of 2020, the Energy Minister specified.
Source: Dnevnik (14.01.2019)

State-Owned Energy Companies to Offer More Electricity on Exchange to Stabilize Electricity Market Bulgaria's state-owned energy companies have committed to offer an extra amount of electricity on the Day Ahead Market of the energy exchange in an attempt to stabilize trading, Energy Minister Minister Temenouzhka Petkova told a news briefing here on Monday after government officials and business executives met to map out measures to settle the situation in the local electricity market. The meeting was hosted by the Energy and Water Regulatory Commission (EWRC) and involved the Energy Ministry leadership, managers of the three state-owned companies which supply the bulk of electricity on the free market (the Maritsa East 2 TPP, the Kozloduy N-Plant and the National Electricity Company (NEK)), managers of the Bulgarian Energy Holding, the Electricity System Operator, the Independent Bulgarian Energy Exchange (IBEX) and the electricity distribution companies. Last week trade unions, employers and government representatives called for urgent measures to ease tensions on the electricity market and in industry. The unions and employers identified three problems: first, the persistent state monopoly, considering that the Maritsa East 2 TPP, NEK and the Kozloduy N-plant are the main sellers and can influence prices; secondly, the purchase at whatever price of about 30 per cent of the electricity on the Day Ahead Market by the three electricity distribution companies to offset their technological losses, which inflates the average prices; and, third, the 38 leva/MWh public obligation surcharge, which pushes up domestic prices but is not paid when electricity is exported. Petkova said the state-owned energy companies now supply 690 MWh, which will increase to over 700 MWh as of January 19, at about 44 leva/MWh. Last week the press compared the January 8 day-ahead price of 207 leva/MWh to the year-earlier level of about 67 leva/MWh. EWRC Chairman Ivan Ivanov said that accelerated steps will be taken this year towards market coupling with the energy exchanges of Southeastern Europe. To this end, the Energy Act will have to be amended to abolish the export charge. IBEX CEO Konstantin Konstantinov said negotiations on Day Ahead Market coupling were most advanced with Macedonia's energy exchange. As to the Intraday Market, coupling with the Romanian energy exchange is likely to take place first.
Source: investor.bg (15.01.2019)

Without economic benefits from Turkish Stream in Bulgaria? The three companies that have shown interest in the expansion of the Turkish Stream pipeline in Bulgaria have not registered enough quantities to generate an economic benefit from the implementation of the project. This became clear after the completion of the first stage of the market test, which was expected to determine whether the project could be economically justified. Bulgartransgaz, which has to build the project for the new transit pipeline from the Turkish to the Serbian border, explained that they changed the terms for the next stage. The cost of reserving the capacity of the pipeline will be reduced, and the time will be increased from 15 to 20 years. The total project cost is expected to be BGN 2.8 billion.
Source: Standart (22.01.2019)

Construction of Gas Interconnector Greece-Bulgaria in Greece Gets Green-Lit Greece's Minister of Environment and Energy George Stathakis has provided the Gas Interconnector Greece-Bulgaria (IGB) with an installation permit for the start of construction works on Greek territory, the ICBG company implementing the project said on Wednesday. The decision will enter into force upon publication in Greece's Government Gazette, which will happen in several days. Bulgaria gave the green light to the construction of IGB on its territory in September 2017. The last step related to the obtainment of permits prior to the start of the construction works in Greece is the acquisition of a licence for independent transmission system operator, which Greece's Regulatory Authority for Energy is expected to issue in the second half of 2019. The IGB project will provide a direct link between the national natural gas systems of Greece and Bulgaria. The pipeline will have an approximate diameter of 813 mm and an overall length of 182 km, with a transportation capacity of approximately 3 bNcm/y of natural gas from Greece to Bulgaria. The project is being implemented by the ICBG AD joint venture company, registered in Bulgaria in 2011 by the State-owned Bulgarian Energy Holding EAD and IGI Poseidon S.A., with each shareholder owning 50 per cent. IGI Poseidon is a Greek-registered company with DEPA S.A. (Greece) and Edison SpA (Italy) as shareholders.
Source: Monitor (14.02.2019)

BEH will not pay the monopoly fine of EUR 77 million by the deadline of March 19 The Bulgarian Energy Holding (BEH) and its subsidiaries Bulgargaz and Bulgartransgaz have announced procedures for the selection of credit institutions to issue bank guarantees in favor of the European Commission (EC) to secure the fine of EUR 77 million imposed at the end of 2018. The penalty of the so-called gas-case filed by the EC following an Overgas complaint for refusal of access to the gas transmission network will not actually be paid until the due date of 19 March 2019. The reason is the intention to appeal as the EC decision itself, which was subject to the fine for abuse of a state gas monopoly and the amount of the sanction. In case of failure, the corresponding interest for the late payment will be charged, with which the final amount due can increase significantly. If in some way Bulgarian state-owned companies manage to rebut the conclusion of the EC, they will only be offset by the costs of issuing and maintaining bank guarantees.
Source: Capital (21.02.2019)

Bulgarian Energy Holding EAD-Sofia (04HA) Report pursuant to Art. 100b (8) of the POSA as of 31 December 2018 on the compliance with the obligations of Bulgarian Energy Holding EAD (BEH or the Issuer) under the terms and conditions of a bond issue, ISIN XS1839682116
Source: BSE (28.02.2019)

Bulgaria's BEH, Bulgargaz, Bulgartransgaz appeal 77 mln euro EC fine State-owned Bulgarian Energy Holding (BEH) said on Friday that, together with its units Bulgartransgaz and Bulgargaz, it has challenged before the EU's General Court the 77.1 million euro ($87.7 million) fine imposed on the three companies by the European Commission for blocking competitors' access to key gas infrastructure. "BEH and its subsidiaries do not accept the Commission’s findings that they have abused a dominant position on the Bulgarian gas market," BEH said in a statement. BEH and its units are seeking annulment of the Commission's decision to fine them. In December, the Commission said that between 2010 and 2015, the BEH group blocked access to the sole import pipeline bringing gas into Bulgaria, the country's only gas storage facility - Chiren, and the domestic gas transmission network. Without access to this essential infrastructure, it was impossible for potential competitors to enter wholesale gas supply markets in Bulgaria. This prevented any development of competition and ensured a near monopoly for Bulgargaz, the EU institution concluded. BEH pools together state-owned energy companies, including gas infrastructure operator Bulgartransgaz and gas supplier Bulgargaz. Bulgaria imports almost all the natural gas it needs from Russia via a pipeline crossing Ukraine, Moldova and Romania.
Source: Dnevnik (05.03.2019)

BEH has chosen a bank guaranteeing the payment of 2/3 of the fine imposed by the EC Bulgarian Energy Holding EAD has chosen a financial institution that will issue a bank guarantee guaranteeing the payment of 2/3 of the fine imposed by the European Commission (EC) to BEH Group in case AT.39849. The Bank will provide a bank guarantee for securing the obligations of BEH and its subsidiary Bulgargaz EAD on the imposed fine. Negotiations between BEH and the bank are under way to clarify the terms of the bank guarantee contract. Bulgartransgaz EAD, Bulgarian Energy Holding EAD and Bulgargaz EAD filed a complaint against the EC decision of 17 December 2018. The companies in the BEH Group did not accept the EC's conclusion that they had abused a dominant position on the Bulgarian gas market. In December, the Commission fined BEH with EUR 77 million for hindering access to the gas transmission network in Bulgaria. Even if it appeals against the EC decision to impose a fine on BEH, Bulgaria will have to implement it.
Source: 24 chasa (11.03.2019)

The state will save the indebted Maritsa East TPP by BGN 600 million The Bulgarian Energy Holding (BEH) plans to increase the capital of its subsidiary Maritsa East 2 TPP by about BGN 600 million, its executive director announced. The aim is to "give extra capital to the headquarters", which has accrued obligations to BEH for BGN 1 billion, and if it is not backed up, it could become insolvent by next year. To make this happen, the European Commission is required to decide whether this is state aid or not. Obligations are likely to be reshaped in order to start a new limitation period. The head of the energy holding announced that the financial result of the state coal-fired power plant is positive - profit of BGN 10 million has been reported, but this is due to the higher prices of the energy exchange during this period. At the end of the year, the state supported the plant with BGN 324 million by buying carbon allowances in order to keep it running.
Source: Dnevnik (15.03.2019)

Troubled TPP Maritsa East 2 is looking for BGN 25 million for working capital TPP Maritsa East 2 is looking for bank loans in the form of overdraft. It will be limited to BGN 25 mln. The intention of the plant is to use the overdraft as working capital - for the purchase of raw materials, resources and other goods necessary for the functioning of TPP. The loan has nothing to do with the money it needs to buy greenhouse gas emissions - a cost that was about to bankrupt the company. The main requirement of the state-owned plant is not to seek collateral on the loan. The first position is for BGN 15 million and the other for BGN 10 million. The contracts are expected to enter into force either from the date of conclusion or at the latest by 7 May. Salvation of TPP Maritsa East 2 will be expensive and its return to life will again be paid by the parent company - the Bulgarian Energy Holding. For this purpose the megastructure plans to increase the capital of the plant by about BGN 600 million. Before that happens, Bulgaria needs to get permission from Brussels.
Source: Sega (21.03.2019)

Bulgargaz will look for cheap non-Russian gas For the first time in its history, Bulgargaz announces an auction for non-Russia natural gas supplier, Nikolay Pavlov, CEO of the company announced. The auction was announced on March 15th. "There are clearly defined criteria and requirements for participants in the procedure, all are invited to submit their offer," he said after the discussion of new gas prices to be set by the energy regulator on March 28th. The head of Bulgargaz described the competition as "something new and important, which will be in the interest of Bulgarian consumers". Asked why Bulgargaz is launching this auction right now, Pavlov replied that currently there are conditions for purchasing blue fuel at a lower price. The company has asked the regulator for a price increase of about BGN 45 per megawatt hour from April 1. This is an increase of 0.83% and the demand is due to the situation on the international markets.
Source: Sega (22.03.2019)

Bulgaria considering capitalising debt of TPP Maritsa Iztok 2 - energy min Bulgaria has discussed the possibility of capitalising the debt owed by state-owned thermal power plant Maritsa Iztok 2 with the European Commission Directorate-General for Competition, energy minister Temenuzhka Petkova said. The final decision on whether to go forward with a debt capitalisation scenario will be made by the middle of the year, Petkova said saying during a meeting with trade union representatives. Bulgaria is also working on developing a capacity mechanism for ensuring the security of electricity supply, which is among the planned long-term measures for the financial stabilisation of the coal-fired power plant, Petkova added. The ministry intends to submit the mechanism for approval by the European Commission in the autumn. Maritsa Iztok 2 ended the first nine months of 2018 with a net loss of 265.7 million levs ($152.2 million/135.9 million euro), sharply up from a net loss of 83.6 million levs in the comparable period of 2017, as expenses for purchasing greenhouse gas emission allowances soared to 259.2 million levs from 89.1 million levs. Maritsa Iztok 2 has eight operating units with a total installed capacity of 1,620 MW.
Source: Banker (03.04.2019)

The court rejected complaints for new nuclear power plant at Kozloduy NPP The five-member panel of the Supreme Administrative Court (SAC) finally rejected the appeals against the decision of the Ministry of the Environment to approve an EIA (Environmental Impact Assessment) for the construction of a new nuclear power plant at Kozloduy NPP site. By this decision, the SAC overruled the decision of the SAC's 3-member panel of May 17, 2018, with which the court canceled the eco-assessment. The decision of the 5-member SAC is final. The magistrates accept that the adoption of the decision of the Minister of Environment and Waters complied with the mandatory procedures of the EIA Ordinance and the Environmental Impact Assessment in a transboundary context. In the course of the EIA procedure, 38 institutions and non-governmental organizations were consulted. Cross-border consultations have also been made. The obligatory public discussions were conducted both on the territory of Bulgaria and in neighboring Romania. The reason for the appeal against the EIA decision was the issue of the long-term solution to the problem of spent nuclear fuel and radioactive waste. Regarding this, the Supreme Administrative Court accepts that, by law, this is the duty of a third party not participating in the administrative procedure.
Source: Banker (04.04.2019)

The choice for gas pipelines with Greece dropped to one - the Greek Corinth The Greek company Corinth Pipeworks Pipe Industry, which is part of the Viohalco Group, will produce and supply pipelines for the interconnector gas pipeline with Greece. They turned out to be the only company allowed with an offer of EUR 58.2 million at a maximum bid auction of 60 million. This was made clear by the opening of the price offer at the ICBG project office company, in which shareholders with equal participation are the state holding BEH and the Greek-Italian company IGI Poseidon. A signing of a contract, however, may not be possible soon, as one of the dropped candidates - the Bulgarian Toplivo-2 owned by Vassil Shtrakov, declared the procedure to be flawed and will probably appeal it. This can seriously confuse plans to start construction in May. Also on 23 April is the opening of bidders' offers for the construction of the pipeline, which may also be accompanied by complaints. The battle there is between the Bulgarian-Italian unification between GP Group, GBS and Bonatti, on the one hand, and the Greek "J&P-Avax" on the other. Corinth Pipeworks has a metal pipe production plant near Athens and according to its site, the company is the leader in this sector on the European market. From the company's 2017 financial statement is clear that its revenue is EUR 326 million, which is almost 50% of the result in 2016. This is largely due to the execution of the TANAP gas pipeline, which is part of the Southern Gas Corridor, and will ensure the transfer of gas from the Turkish border via Greece to Albania. The company also has a pipeline contract for the Baltic gas pipeline from Finland to Estonia. The majority owners of Corinth Pipeworks through the Belgium-based Cenergy Holdings and Viohalco are Evangelos and Nicholas Stasinopoulos. In Bulgaria, Viohalco group has three large plants - Stomana Industry, Etem and Sofia Med. Nine companies participated in the procedure, which started a year and four months ago, but only three were invited - only Corinth, the Bulgarian Toplivo-2 and the Turkish Erciyas Celik Boru Sanayi. However, the latter two dropped out - the first because of documentation shortcomings that will become known after the evaluation committee's minutes, and the second because it did not renew its proposal in time.
Source: Capital (16.04.2019)

BEH returns EUR 97.7 mln to Gazprom for South Stream BEH and Gazprom are in the final stage of agreeing an agreement on the South Stream project. This also includes the settlement of the contract for a loan from 2014, during which BEH has absorbed EUR 97.7 million. On April 30, a publication by the Russian Interfax agency said BEH owed nearly EUR 100 million to Gazprom, despite the assurances of politicians that Moscow does not have claims to Sofia in connection with the completion of the South Stream project. Gazprom EP International BV has provided BEH with a long-term credit line for EUR 97.7 million. In December 2014, Gazprom stopped work on the South Stream project. In accordance with the loan agreement, the company did not seek interest from it. It expected to receive the amount of the principal debt on the loan, the media wrote. It also reports that at the end of 2018, Gazprom EP International BV, with the support of Gazprom, has agreed conditions for an agreement to repay the loan. BEH confirms the loan and says that EUR 97.7 million has been invested in the capital increase from 2014 of the project company South Stream Bulgaria. "With the reduction of the capital of the project company and liquidation, which are specified in the agreement, the BEH quota will be sufficient to serve for the return of the loan to Gazprom EP International BV", the holding company said.
Source: 24 chasa (03.05.2019)

A story in "Capital" says that the State-owned Maritsa East 2 thermal power plant (TPP) has reported a gigantic loss of 332 million leva for 2018. Such a negative result is probably an absolute record in Bulgaria's corporate history. The sum is more than half of the plant's revenues in 2018. The company's financial report shows that the negative financial result is twice bigger than the one in 2017, mainly due to the higher price of carbon emissions. The total loss is already 605.5 million leva, and the debts exceed 864 million leva. The plant is literally facing bankruptcy, because its current liabilities are by nearly 909 million leva more than its assets. For the TPP to be saved, the Bulgarian Energy Holding is preparing a procedure for increasing the companyÒs capital, but this will only have a temporary effect, "Capital" comments. Unless the energy market undergoes a cardinal change that would significantly increase the prices, the TPP's loss will continue to rise and, according to forecasts, it might reach half a billion leva this year. "Capital" also has an article about the 2018 financial report of the National Electricity Company (NEK), which lost 73.8 million leva last year, compared to a profit of 6.8 million leva in 2017. The company's current liabilities exceed its current assets by 847.7 million leva, which is by 285 million leva more compared to the end of 2017. NEK continues to experience difficulties in servicing its debts to suppliers and contractors and its credits, which remain over 4 billion leva.
Source: Capital (07.05.2019)

Bulgarian Energy Holding EAD-Sofia (04HA) Semi-annual report pursuant to Art. 100b (3) of the POSA as at 31 December 2018 on the compliance with the obligations of Bulgarian Energy Holding EAD under the terms and conditions of the bond issue, ISIN XS1839682116
Source: BSE (15.05.2019)

Bulgarian Energy Holding EAD-Sofia (04HA) 2018 consolidated annual financial report, verified by a registered auditor - Part 1
Source: BSE (15.05.2019)

Bulgarian Energy Holding EAD-Sofia (04HA) 2018 consolidated annual financial report, verified by a registered auditor - Part 2
Source: BSE (15.05.2019)

Bulgarian Energy Holding EAD-Sofia (04HA) 2018 consolidated annual financial report, verified by a registered auditor - Part 3
Source: BSE (15.05.2019)

Tank Company is building a production base for BGN 5 million in Burgas A company specializing in the production of tanks and pressure storage tanks started the construction of a modern production facility in the Industrial and Logistic Park - Burgas. Citygas Bulgaria will invest BGN 5 million in its new facility, which will produce all sizes of cisterns and tanks, barometers, pellet dryers, pressure vessels with non-standard shape and others. The engineering company will open 50 new jobs in its new production facility. The company relies on state-of-the-art equipment, equipment for technological preparation of materials, test stands, cameras for preparation and laying of any coatings.
Source: economic.bg (23.05.2019)

EC asked Bulgaria to fully introduce market prices for electricity Bulgaria's energy plans are chaotic, the numbers are shuffled, and sources of funding - unclear. The country does not say exactly how it will be able to fight energy poverty, how it will make the air cleaner by using clean energy to heat or cool. At the same time, gas plans are lagging behind, and diversification of sources is still in the future. This is understood by the EC report on the extent to which the Bulgarian draft of the national energy and climate plan for 2030, announced last week, is adequate. It is important because on that basis the Energy Strategy of Bulgaria will be renewed by 2050. It will determine to a great extent how the country will develop in the coming decades. Brussels points out that Bulgaria must move on to market, rather than regulated, electricity prices - a critique that has been repeated over the years by the World Bank. How much it will cost to implement all of these plans is still unclear, but unofficial accounts show that it's billions of BGN, but it is unclear where they would come from.
Source: Sega (24.06.2019)

Bulgarian Energy Holding EAD-Sofia (04HA) In view of a forthcoming interest payment on an issue of bonds, please, be informed of the following: - Issuer: Bulgarian Energy Holding EAD-Sofia - BSE code: 04HA - ISIN: XS1839682116 - Date of interest payment: 28.06.2019 - Coupon rate: 3.5 % - All bondholders registered with the Central Depository as of 27.06.2019 (Record Date) will be entitled to receive the payment. - The final date for transacting in bonds of this issue on BSE-Sofia, as a result of which the buyer will have the right to the interest payment, will be 25.06.2019 (Ex Date: 26.06.2019).
Source: BSE (25.06.2019)

BEH did not allow Peter Iliev to leave NEK The practice in this government that someone wants to leave office, but is not permitted to, continues. Such is the situation with the CEO of NEK Petar Iliev, who resigned on June 19th. However, the Board of Directors of Bulgarian Energy Holding JSC did not accept this resignation and Iliev will have to continue to manage the public provider despite his reluctance. The resignation came after business organizations once again reported on put-up auctions for electricity on the free market, organized by NEK. Employers complained that they were becoming NEK's "shepherds" and poor management of the system led to a rise in the cost of electricity for business. In four of its official positions this year, the four nationally-represented employers' organizations - CEIBG, AICB, BIA and BCCI - accused NEK and even demanded the resignation of Petar Iliev because they believe that there are auctions for specific buyers citing the name of businessman Hristo Kovachki. Before Petar Iliev, the Minister of Energy Temenuzhka Petkova and Social Minister Biser Petkov could not leave their offices, and GERB deputy Delyan Dobrev managed to leave the parliament at second attempt.
Source: economic.bg (27.06.2019)

Bulgaria again has the highest electricity price in Europe Once again in the last month the Bulgarian business will pay the highest price for electricity across Europe. The price achieved on the Bulgarian Independent Energy Exchange's "Day ahead" market is 118.73 BGN / MWh of base power and is even higher than the Greek one, to which technological costs and other charges have been charged. For comparison, in Romania and Hungary, the prices are about 100 BGN / MWh and in Western Europe - about 80-90 BGN / mWh. Since the beginning of July, the stock price of electricity in Bulgaria is the highest in the region, with an absolute record for the summer season - over 195 BGN / mWh. These price levels are significantly higher than the forecasts of the Energy and Water Regulatory Commission for the current regulatory period - 89 BGN / MWh. The main reason for the high electricity prices in Bulgaria is the artificial shortage created. Kozloduy NPPs, Maritsa East 2 TPP and NEK (all three part of BEH) provide between 60 and 63% of the electricity for the free market.
Source: Capital (23.07.2019)

Greece Has Granted a Gas Interconnector License to Bulgaria By decision of the Greek Regulatory Authority for Energy (RAE), ICGB AD receives a license for an Independent Transmission System Operator (INGS). The license, issued on June 27, 2019 and officially received on July 18, 2019, concerns the Greek section of the gas interconnector with Greece (IGB project). The license is issued for a period of fifty (50) years and expires on June 27, 2069. It entitles ICGB AD to start the construction of the project, including the pipeline and auxiliary facilities and equipment on the territory of Greece. Obtaining this license represents enormous progress as it is the final step towards securing the regulatory regime for the IGB project and ensuring a successful start of the construction of the pipeline across Greece. “The continuous corporate efforts of ICGB and its shareholders, the political will of the governments of Bulgaria and Greece and the unquestionable support from the EC helped us to successfully overcome the challenges before IGB”, announced the Executive Officer from Bulgarian side Teodora Georgieva. According to her, the gas project already has secured funding, the contractors for all key activities have been selected, the contracts for owner’s engineer and construction supervision have been signed and the reserved capacity will ensure the successful operation of the interconnector. “The synergy of IGB with other key energy projects – part of the Southern Gas Corridor like TAP and TANAP, makes the need of the interconnector undeniable and inseparable part of the comprehensive energy strategy and the priorities of Europe”, underlined the Executive Officer of ICGB from Greek side Konstantinos Karayannakos. He noted that the project ensures real diversification of gas supplies, which will improve Greece and Bulgaria’s positions on the energy market and will contribute to the integration of the entire region. The construction of the gas interconnector Greece-Bulgaria aims to ensure diversification not only of the routes but also of the natural gas sources for Bulgaria and the region. As part of the development of the Southern Gas Corridor, through IGB Bulgaria and its neighboring countries will have access to alternative supplies from the Caspian region as well as from existing or prospective LNG terminals. IGB‘s implementation also provides opportunities for transit transmission through the gas pipeline Greece-Bulgaria and the gas transportation system of Bulgartransgaz EAD to the other gas interconnectors with Romania and Serbia, ICGB reported.
Source: econ.bg (23.07.2019)

BEH paid BGN 52.5 million interest on the second bond loan Bulgarian Energy Holding EAD successfully made the third interest payment on its second Eurobond issue on 2 August 2016, listed on the Irish Stock Exchange (Euronext Dublin), with a nominal value of EUR 550 million, an annual interest rate of 4,875% and maturity for 5 years. The interest payment amounted to BGN 52.441 million (EUR 26.813 million). In October 2018, BEH increased its third Eurobond issue, listed on the Irish Stock Exchange and the Bulgarian Stock Exchange, by another EUR 50 million. Thus, BEH's bonds, which unites state-owned energy companies, came to EUR 600 million at an annual interest rate of 3.5% and a maturity of 7 years. The total liabilities of the holding company for bond loans exceeded BGN 3 billion. Another $ 2 billion is owed to some of the energy companies that BEH brings together to which it has lent interest-free loans.
Source: Banker (02.08.2019)

TPP Maritza East 2: We work only because BEH supports us financially TPP Maritza East 2 accumulated a loss of BGN 144.9 million from the beginning of the year to the end of June. This is clear from the published analysis of the financial situation of the plant. The negative result of the company deteriorates with another BGN 20.7 million compared to the first half of 2018, and the company remains in a difficult financial state. Costs for carbon offsets alone for the six months of 2019 were BGN 192.1 million. Separately, the cost of the power plant to the Electricity System Security Fund is over BGN 15.3 million. Thus, in the current market situation, the company is not able to cover its costs and relies mainly on the support of BEH, the report of the state-owned TPP reads. The report starts with the positive part - operating income is BGN 354.2 million and has increased by 23.15% compared to the first half of last year. At the same time, electricity sales fell to 3.2 million MWh, down by 8.28% from the same period last year. Despite lower sales on the free market, the coal plant reported a sales growth of BGN 27.7 million (9.79%). Higher revenues were generated due to higher prices on regional exchanges and the Independent Bulgarian Energy Exchange.
Source: 3e-news (08.08.2019)

Bulgargaz sues Toplofikacia Sofia for BGN 35 million Bulgargaz sues Toplofikacia Sofia for BGN 35 million. The executive director of the gas company Nikolay Pavlov said. This amount is only a part of the total debt of BGN 120 million, which the Sofia-based district heating company company owes Bulgargaz. The liabilities have been accumulated within one year after the Bulgarian Energy Holding purchased in full the debt of the heating company in 2018. Pavlov explained that Bulgargaz has already filed a lawsuit because it is in danger of not being able to pay for the fuel to its supplier, Russia's Gazprom Export. Bulgargaz cannot and should not cover the obligations of a client on its own account, including Toplofikacia Sofia, the head of the gas company underlined. He explained that no company can simultaneously cover huge debt while fulfilling its obligations.
Source: news.bg (12.08.2019)

Bulgargaz ended the half-year with a profit of BGN 27.9 million The state-owned Bulgargaz significantly increased its net profit in the first six months of this year and reached BGN 27.9 million. This was recorded in the financial statement of the company, which was recently published. The profit of the company increased by 187.5%, and in the same period last year the profit was only BGN 9.3 million. The company managed to pay their imposed fine in the BEH gas case. The company jointly with BEH and Bulgartransgaz paid one third of the imposed fine, which amounts to BGN 50.2 million. The amount was paid at the end of 2018, explained Bulgargaz. Since the beginning of the year Bulgargaz has signed several contracts for the supply of natural gas through a virtual outlet.
Source: 3e-news (16.08.2019)

BEH works with a consultant on the capacity of coal plants The Bulgarian Energy Holding (BEH) signed a contract with an international consultant to develop a capacity mechanism, as provided by European legislation, for power plants that produce electricity from coal, said Energy Minister Temenuzhka Petkova. By the end of October, this mechanism must be notified to the European Commission, Petkova pointed out and hoped that the mechanism would be approved. Thus, we will give a much greater sustainability to the development of coal mining in Bulgaria and a guarantee for our energy security, said Temenuzhka Petkova. This industry is a sector of the Bulgarian economy of strategic importance and at the heart of a number of other sectors. It forms almost 5% of GDP. It directly employs are nearly 22,000 people and indirectly - about 120,000. One of the biggest challenges facing the mineral industry is related to the development of coal mining, said Petkova. Coal-fired power plants account for 46% of the electricity production in the country, which is directly related to the national and energy security.
Source: investor.bg (19.08.2019)

Bulgaria receives 13 letters of interest in Belene nuclear station tender Bulgaria’s Energy Ministry said it has received letters of interest from 13 candidates in its tender to pick a strategic investor for the restart of the Belene nuclear power plant. Not all letters were from potential strategic investors, since as part of the process, the ministry also sought offers for minority stakes and from potential long-term electricity buyers. In total, seven candidates formally recorded their interest in becoming a strategic investor, including Rosatom, China National Nuclear Corporation and Korea Hydro&Nuclear Power. Four other parties were named as in the running for strategic investor, including one German-registered company and three Bulgarian-registered entities. French Framatome and General Electric both declared their interest in supplying equipment and participating in securing the funding for the project. The Republic of North Macedonia has lodged its interest in acquiring a minority stake and signing an electricity-purchasing agreement. A task force that will include representatives of state electric utility NEK, its parent company Bulgarian Energy Holding and grid operator ESO, would draft a shortlist of strategic investor candidates within 90 days.
Source: Sofia Globe (21.08.2019)

Bulgaria issues guarantee for 110 mln euro EIB loan for gas link construction Bulgaria is issuing a state guarantee for a loan of up to BGN 215 million from the European Investment Bank, to be used to finance the construction of a gas interconnection with Greece, the government said in a statement after it approved the state guarantee agreement with the the European Investment Bank (EIB). The loan will be taken out by state-owned Bulgarian Energy Holding (BEH) and must be repaid within 25 years. The loan will have a three-year utilisation period. The total investment in the Gas Interconnector Greece-Bulgaria project is estimated at around EUR 240 million. In November 2018, the European Commission said that a state guarantee for the EIB loan will not be in breach of EU state aid rules. The gas link will connect the Greek gas transmission system in the area of Komotini to the Bulgarian gas transmission system in the area of Stara Zagora. The planned length of the gas pipeline is 182 km and the projected capacity will be up to 3 billion cu m per year in the direction from Greece to Bulgaria. Depending on interest from the market and the capacities of the neighbouring gas transmission systems, the capacity of the pipeline can be increased to up to 5 billion cu m per year, thus allowing for physical reverse flow from Bulgaria to Greece with the additional installation of a compressor station. The project is being implemented by the joint venture company ICGB, in which BEH and Greece-registered IGI Poseidon hold equal stakes. Greek public gas corporation DEPA and Italian energy group Edison own 50% each of IGI Poseidon.
Source: Banker (29.08.2019)

Bulgarian Energy Holding EAD-Sofia (04HA) BSE has received a semi-annual report as at 30 June 2019 on the compliance with the terms and conditions of the bond loan issued by the company, ISIN XS1839682116.
Source: BSE (30.08.2019)

Bulgarian Energy Holding EAD-Sofia (04HA) BSE has received a semi-annual report as at 30 June 2019 on the compliance with the terms and conditions of the bond loan issued by the company, ISIN XS1839682116.
Source: BSE (08.10.2019)

KPKONPI found conflict of interest with a former BEH chief Former head of the Bulgarian Energy Holding (BEH) Petio Ivanov found himself in a conflict of interest. The reason is that he combined this post with his participation on the board of directors of Bulgargaz. This was made clear by a decision of the Anti Committee for Combating Corruption and the Withdrawal of Illegally Acquired Property (KPKONPI). As director of the holding Iliev voted for himself during his appointment at Bulgargaz and determined his salary. Therefore, he was fined BGN 15,000 and ordered to forfeit the received remuneration of BGN 60,000. Other former and current managers of BEH, such as Jacquelin Cohen, Zhivko Dinchev and Andon Andonov, are in a similar situation, but there are no known decisions made about conflicts of interest. Cohen, in addition to the director of the holding, is also a member of the Board of Directors of Kozloduy NPP. Dinchev is the executive director of TPP Maritza-East 2 and Andonov directs Mini Maritza-East.
Source: Sega (15.10.2019)

BEH transferred BGN 41 million for gas connection to Greece Bulgarian Energy Holding SPJSC (BEH) transferred the amount of BGN 41.5 million to the project company ICGB JSC for capital increase. The decision was made on October 10 by the General Meeting of Shareholders of the project company (BEH and IGI Poseidon). The funds will be used to finance the construction of the Greece-Bulgaria (IGB) gas interconnector. To secure the money, BEH took a government guaranteed loan from the European Investment Bank (EIB) up to BGN 215 million. The projected investment cost of the project is estimated at EUR 240 million excluding VAT. The European Commission approved State aid for Gas Interconnection Greece - Bulgaria (IGB) with its decision of 8 November 2018.
Source: economic.bg (24.10.2019)

Experts question the need for Balkan Stream Gas consumption in Bulgaria remains low, and Bulgaria still relies mainly on a single source of blue fuel, no local production and no gas connections with neighboring countries. Against this background, the chances of a future Balkan gas hub in Bulgaria are not great, and Balkan Stream will diversify the route of gas, but not its source. This is the common opinion of experts at the roundtable on gas supplies to Bulgaria. "To have a hub, there must be gas," Plamen Dimitrov of the Bulgarian Geopolitical Society commented the idea for gas center Balkan. Dimitrov also quoted the words of the head of Russian giant Gazprom Alexei Miller, saying that the company prefers to work on long-term contracts and would not participate in the hub. "There are not many market players, we have no traditions in this field, and no staff," Plamen Dimitrov explained. Bulgaria cannot have a working hub because there is no working market, experts concluded. They also criticized the Balkan Stream project, whose construction began days ago. The cost of the route is over EUR 1.1 billion, and last Wednesday, state-owned Bulgartransgaz announced that it had taken a loan of EUR 200 million for the advance payments of the segment. "It is more than clear that Russian gas would be involved, the question is whether Bulgaria will have alternatives so that we can choose price deliveries when they are more profitable," said expert Galina Alexandrova. She added that the project does not diversify sources, only routes. There is also a risk in financing the project.
Source: Sega (30.10.2019)

TPP Maritza East 2 expects emission allowance prices to reach EUR 34 by 2024 Based on the updated forecast report of TPP Maritza East 2, the company operating the largest coal power plant on the Balkan Peninsula expects net cash flow to increase to BGN 111.95 million, while payments from the main activity can reach BGN 1.025 billion. The cash flow projected by TPP Maritza East 2 for the period 2019-2024 covers the repayment period of the loan to Bulgarian Energy Holding EAD (BEH) (BGN 398,025,450.71) until 30.06.2024, it is clear in the report from a closed meeting of the Energy and Water Regulatory Commission (EWRC) in early October, reviewing the application of TPP Maritza East 2 for issuing an authorization to conduct transactions that lead to or could lead to a breach of security of supply due to indebtedness of the energy company.
Source: investor.bg (30.10.2019)

Three companies remain in contention for Belene NPP Three companies continue to compete for investor in Belene NPP. These are Russia's Rosatom, through its subsidiary Atomenergoprom, Korea's Hydro and Atomic Energy Corporation and China's State Nuclear Corporation. They had to be selected by a working group comprising representatives of the Ministry of Energy, BEH and NEK. The choice of these companies is no surprise because they meet the requirement for a strategic investor, Bulatom chairman Bogomil Manchev said. According to him, the project will include the French Framatom and General Electric. In practice, they will also be investors because they offer a leasing scheme to pay for the equipment they will supply for the plant, commented energy expert Prof. Atanas Tasev. Consulting company IPK&UP, the German Bektron-Liaz Technical Engineering, the Bulgarian-Czech consortium Belene Nuclear Power Plant 2019 and the consortium Belene Bulgaria consisting of the companies of Kovachki have expressed interest as an investors.
Source: Trud (26.11.2019)

Debt of Toplofikacia Sofia BGN 756 million A total of BGN 756 million is the debts of Toplofikacia Sofia SPJSC. The municipal company has to pay BGN 596 million to the Bulgarian Energy Holding. The debt to Bulgargaz is BGN 147 million and includes a BGN 50 million advance invoice for November. This was made clear at the meeting of the Finance Committee of the Sofia Municipal Council, at which the management of Toplofikacia Sofia was heard. The new boss of the company Alexander Alexandrov assured that it is servicing its duties correctly and there is no cause for concern. According to him, the solution to the problem is for Toplofikacia Sofia to produce more electricity and diversify the supply of fuel. By March, all the necessary analysis must be ready so that the search for an outside strategic investor may start.
Source: Trud (27.11.2019)

Bulgarian Energy Holding EAD-Sofia (04HA) BSE has received an interim report as at 30 September 2019 on the compliance with the terms and conditions of the bond loan issued by the company, ISIN XS1839682116.
Source: BSE (28.11.2019)

The Greece-Bulgaria interconnector will be ready by the end of 2020, Energy Minister Temenuzhka Petkova assured at a session of the Energy Commission in Parliament. Construction of the interconnector between Greece and Bulgaria should be completed in parallel with the completion of the Trans-Adriatic gas pipeline. In this way, the contract between Bulgargaz and the Azerbaijan company SOCAR for the supply of 1 billion cubic meters of gas from the Shah Deniz 2 deposit will be fulfilled. MEPs approved a bill ratifying a guarantee agreement between Bulgaria and the European Investment Bank (EIB) in connection with a contract for financing the Greece-Bulgaria interconnection gas link between the EIB and Bulgarian Energy Holding signed on October 10, 2019. The loan is up to EUR 109.9 million and the repayment period is three years.
Source: 24 chasa (29.11.2019)