The privatization of Heat Supply-Sofia should finish until the end of 2009 at latest, announced the Minister of Economy and Energy Petar Dimitrov. The company should be sold as a whole and not at parts. If Sofia Municipality agrees we will do it together. Otherwise only the 42 percent owned by the state will be privatized together with the debt to Bulgargaz worth BGN 150 mln, added the Minister.
Source: Monitor (24.01.2008)

18 members of the Bulgargaz holding Board of Directors have been given salaries for total of BGN 666 thous last year, which is BGN 55 thous per month. This was presented in the financial report of the gas holding and its 3 subsidiaries. Among the members of the management boards of the four companies are deputy ministers, counsellors of the PM and the Minister of Economy, even municipal councillors. 2007 is the first whole year of the newly-formed Bulgargaz holding SPJSC.
Source: 24 chasa (21.07.2008)

Energy companies under the control of Bulgargaz Bulgargaz will be the top company in the future Bulgarian Energy Holding SPJSC (BEH SPJSC). The rest of the state-owned companies to be included in the holding will be NEC, Nuclear Power Plant Kozloduy, TPP Maritsa East 2 and Mines Maritsa Iztok. The new company will be based on Bulgargaz as the name and basic line of business will be altered. BEH will remain a joint stock company, 100% state-owned. Capital shares of NEC, TPP Maritsa East 2 and Mines Maritsa Iztok will be transferred into BEH. Except for these companies, the holding will include also the existing Bulgargaz Holding subsidiaries – Bulgargaz - Sofia, Bulgartransgaz and Bulgartel. The new energy giant will have assets worth BGN 8.5 bln, earnings of about BGN 3.6 bln and 21 thous. employees.
Source: Standart (19.09.2008)

Bulgarian Federation of Industrial and Energy Consumers (BFIEK) demands prices of natural gas to drop by up to 30% instead the increase of 36.1% requested by Bulgargas. The federation unites twelve of the big industrial enterprises in Bulgaria, members of the Confederation of Employers and Industrialists in Bulgaria (CEIB). We will announce exactly how much the blue fuel will rise on September 24, Evgeny Ivanov, executive manager of CEIB, said for Pari Daily as on that day the State Commission for Energy and Water Regulation (SCEWR) will discuss the rise demanded by Bulgargas. The reason for lower prices is the fact that over the last three months the gas price dropped by 30% on world markets. It is insolent the big energy consumers to want lower price for the gas, having in mind that for a year it has been artificially kept low, the ex-minister of energy and economy Rumen Ovcharov commented. Let these companies negotiate the lower prices themselves. Kiril Domuschiev, owner of Biovet and other pharmaceutical companies, explained to Pari Daily that despite their desire, this is impossible as Bulgarian legislation forbids such activity. CEIB considers it intolerable the high prices to be used by the state to subsidise debtors like Kremikovtsi and Toplofikaciya.
Source: Pari (19.09.2008)

Bulgargas gas monopolist won more enemies. First, the big industrial consumers of natural gas blamed the company in racketeering after announcing to increase by 36% the blue fuel. On Monday Bulgargas stopped the supplies for the central heating installations owned by Hristo Kovachki. The conflict turns from economical into political. New law is needed to regulate prices, methods and accounting of central heating.
Source: Pari (23.09.2008)

The price of gas will be increased by 50% in the next six months in two steps: the first step comes into power from today and the rise is by 24% and the second is from January 1, 2009 with another 21.45%. This price will be valid only if oil residue, diesel oil and the rate of dollar remain on the same level. The Confederation of employers and industrialists in Bulgaria are against the shocking rise of the price in time of global crisis.
Source: Pari (01.10.2008)

Sofia municipality will increase its capital in "Toplofikacia - Sofia AD by up to 50 million Euro. The authorized capital of the heating company is 107 million leva and is divided into equal shares, of which 58 percent are owned by the Sofia municipality and the remaining 42 - the Ministry of Economy.
Source: investor.bg (09.10.2008)

Three thirds of power station subscribers in Sofia might remain without heating for the winter. We have no money yet to start the central heating, the boss of Toplofikaciya-Sofia said. He justified his actions with the reduced to 35% supply of gas. In Sofia 51 buildings with 90% unpaid bills remain in the cold. The municipality of Sofia, majority owner of the company, increased the capital with BGN 55 million in an attempt to clear up debts.
Source: Pari (13.10.2008)

Bulgaria’s energy regulator SEWRC will check Bulgargaz’s price-forming revenue and expenses, chairman Konstantin Shushulov said. Economists from unions and employers should wrap up the audit by the year’s end. The move was triggered by Bulgargaz’s 36.5% price hike demand from October chopped by the regulator to 23.89%. Fearing massive losses, the gas company contested the price decision, and employers’ organisation CEIB, the Bulgarian Chamber of Commerce and Industry (BCCI) and trade union CITUB did the same.
Source: Dnevnik (22.10.2008)

I haven't gathered the money for the BGN 300,000 bail but I will have it on Monday, the biggest BG private investor in power engineering Hristo Kovachki said. Two days ago Sofia's procurator's office accused him of tax crimes (mainly misappropriation of VAT in food producing companies) and of persuading another person to commit crimes with the aim of property benefit. Kovachki defined the accusations as " confused and vague".
Source: Pari (14.11.2008)

tate-controlled gas distributor Bulgargaz will ask the energy regulator for a 25.88% increase in natural gas prices to BGN 678.04 per 1,000 cu m, VAT excluded, on the back of the rising dollar and despite the falling oil. Minister Petar Dimitrov said upon the October hike that prices will jump by 21.5% as of January. The price demand is unlikely to be reduced given that the regulator axed the previous request by 12.62%, said Bulgargaz executive director Dimitar Gogov.
Source: Dnevnik (17.11.2008)

Bulgartransgas, a unit of state-owned Bulgargaz, is bracing up for a 10% to 15% drop in gas distribution revenue next year after key consumers cut down production capacities, executive director Angel Semerdjiev said. Fertiliser maker Agropolychim and steel mills Stomana Industry and Kremikovtzi are reducing output, and fertiliser producer Neochim may postpone the completion of a planned repair as the crisis grows deeper. Over 3 billion cu m of gas was distributed in Bulgaria last year. Flagging consumption will not hurt supplies quality as there are new consumers waiting to be hooked to the grid, said Semerdjiev.
Source: Dnevnik (24.11.2008)

The Sofia heating utility may enter the newly-founded Bulgarian Energy Holding after the ministry was granted a 58% municipal share in the ailing company, deputy minister Galina Tosheva told Dnevnik. The ministry and Deloitte Bulgaria, which advised the creation of the holding structure merging major power generation assets, are weighing different rescue options including a capital boost at the holding company to lend cash to Bulgargas, Tosheva said. Under the scheme, the holding company will buy into Toplofikatsia Sofia against paying off its debts to the gas company. The Government is due to vote on a BGN 80 million capital hike next week. The money will be sourced from the state budget. Tosheva said this did not violate EU law as confirmed the ministry’s legal experts. Another option on the table is giving Bulgargas a loan to guarantee supplies from Russian major Gazprom. Consumers owe the struggling utility more than BGN 300 million.
Source: Dnevnik (25.11.2008)

Scottish Melrose, Bulgargaz join hands over gas deposit Edinburgh-based oil and gas exploration and production company Melrose Resources and Bulgaria’s gas monopoly Bulgargaz may set up a joint venture to build a gas deposit in Galata, in central Bulgaria, Melrose said. The project will absorb EUR 713 million. According to the Scottish firm, Bulgargaz will own up to 40% of the new company. Bulgargaz confirmed there have been talks but declined to say whether any agreement had been reached.
Source: Dnevnik (02.12.2008)

Bulgarian Energy Holding, the structure created two months ago to consolidate key power generation assets, reported a 22% rise in nine-month profit revealing no financial details. BEH comprises the country’s biggest coal-fired power plant, the state-owned Maritsa East 2, coal miner Maritsa East, Kozloduy nuclear plant, state-run gas distributor Bulgargaz, Bulgartransgaz, telecom services provider Bulgartel, national power grid operator NEK and the Electricity System Operator. Kozloduy NPP was the best performer in the group. Bulgargaz landed at the other end of the scale with a loss of BGN 35.4 million for the nine months blaming the regulatory axe on its price hike proposal. At the same time, the gas company continued to pocket fees for the transit of Russian gas via Bulgaria at the expense of Bulgartransgaz in breach of the gas directive. The two companies are expected to sign an agreement on the fees by the end of the year.
Source: Dnevnik (03.12.2008)

Gas prices in Bulgaria may drop by BGN 70 to BGN 590 per 1,000 cu m from April 1, 2009, under forecasts by local monopoly Bulgargaz. The gas company sees the price downtrend spanning the months to next October but heaviest in the summer. Before chopping tariffs, however, the state-run gas company will seek regulatory nod for a 25.58% hike to BGN 678.04, VAT excluded, from January 1. The request will be submitted with the regulator by December 1 although big consumers are calling for a step-by-step increase and deferred payment.
Source: Dnevnik (03.12.2008)

Bulgarian Energy Holding will buy Sofia heating utility’s BGN 240 million debt to state-run gas company Bulgargaz, deputy energy minister and BEH executive director Galina Tosheva said after the Government voted Thursday on a BGN 400 million capital hike. Toplofikatsia Sofia has amassed a BGN 80 million debt for supplies. Last year it was rescheduled a BGN 150 million debt until 2013. BEH, which bundles Bulgaria’s core state-run energy assets, will acquire a stake in the utility after boosting its capital by as much as it owes to Bulgargaz.
Source: Dnevnik (08.12.2008)

Gazprom sees 30-42% price cut from ‘09 Russian gas major Gazprom may lop off by 30 to 42% the tariff for supplies to European consumers next year due to the recent record decline in oil prices on the global markets, spokesman Sergei Kupriyanov said. Kupriyanov said Bulgaria will also buy at lower prices but did not elaborate further. According to Bulgargaz, Bulgaria’s state-run gas distributor, the effect of the price cut will not be felt before April. The company is demanding a 21.3% price hike from January to limit the bad impact of soaring black oil and gas oil tariffs. While seeing consumption picking up 3% for 2008 against a planned 7% as warm weather lingered and production capacities were shut, the gas monopoly will pay for all it has ordered under a take-or-pay clause in the supply contract. Bulgaria should consume less than 3 billion cu m for the clause to be triggered, Kupriyanov said. The ongoing financial crisis will not affect the South Stream natural gas pipeline project, Kupriyanov said.
Source: Dnevnik (15.12.2008)

Bulgaria’s energy regulator may slap a BGN 1 million fine on Bulgargaz, the state-run gas monopoly, for importing costlier Russian gas instead of tapping on the gas repository in Chiren in the past quarter, said chairman Konstantin Shushulov. The gas company snubbed a regulatory decision to increase prices for Chiren quantifies in a bid to trim imports from Witershall Erdgas Handelshaus, Gazexport and Overgas Inc.. Bulgargaz has caused a BGN 44 million damage to the state by importing Russian gas at the highest possible prices instead of using 209.2 million cu m from the Chiren depository at BGN 396.78 per 1,000 cu m, Shushulov said.
Source: Dnevnik (17.12.2008)

Bulgaria’s state-run gas distributor Bulgargaz may lodge legal claims against energy regulator chairman for tarring its reputation and against the new gas price if the commission’s proposal is approved, said executive director Dimitar Gogov. Konstantin Shushulov, chairman of the State Energy and Water Regulatory Commission, accused the gas company on Tuesday of importing costlier Russian gas and disregarding a regulatory decision to use the Chiren gas repository, thus causing a BGN 40-44 million loss to the state. Gogov said the company was not required by law to use resources from the storage facility in the northwestern village.
Source: Dnevnik (18.12.2008)

Bulgarian Companies Extract Gas for Nabucco Bulgarian companies would be licensed for extracting natural gas for Nabucco project. Bulgarian businessmen will be able to take part in joint ventures and invest in the production of natural gas from countries where this fuel is abundant, the Standart learnt from sources from the delegation led by Bulgaria's President Georgi Parvanov who is on a two-day visit to Turkey. Nabucco is a rival project to the Russian South Stream and is expected to start functioning in 2013 and transport gas from Turkey to Austria via Bulgaria, Romania and Hungary. Turkey assured Bulgaria gas will be supplied just in exchange for the transit fees,it emerged at the meeting of President Parvanov and Turkey's Prime Minister, Recep Erdogan who talked in the Swissotel in Ankara under tight security measures. By now Bulgaria has negotiated two billion cubic metres of natural gas on Nabucco project. Today Georgi Parvanov will make an official visit to Turkmenistan where an energy agreement is also expected to be signed.
Source: Standart (18.12.2008)

Drop of demand at Radomir Metal Metallurgical enterprise Radomir Metal Industries JSC reported a worrying drop of 30 percent in orders this year. Raising the price of power by almost 40 percent in 2007 and the appreciation of gas by 25 percent during that led to increasing the costs of the output, over 70 percent of which is exported. In the last quarter solely, orders have reduced by 40 percent, said the chairman of the supervisory board of the company - Plamen Bonev. If the crisis continues with these rates, the company will be able to maintain no more than 500 jobs out of the current 1200, he said. Management team the company has developed an anti-crisis program that aims at maximum reduction of the costs. Layoffs have also been planned and the labor inspection has been promptly notified. Innitially, in optimistic projection, 150-180 people are to be laid off, announced Bonev. According to him, however, if granted the request of Bulgargaz for 21 percent rise in the price of the blue fuel will be deadly for large enterprises, such as the Radomir-based one. In a letter to the Governmen, the management team of Radomir Metal Industries JSC informed of the dangers that the company faces. We do not expect financial aid from the state, but we expect it to help the granting of contracts for the needs of the enterprises with state participation, the letter said.
Source: Pari (19.12.2008)

Gas-rich Turkmenistan, Bulgaria sign energy pact Bulgaria secured a tentative deal Friday to receive gas supplies from energy-rich Turkmenistan that could lay the grounds for increased gas deliveries to Europe from the Central Asian nation. Bulgarian President Georgi Parvanov said that Turkmenistan has backed a proposal to provide 2 billion cubic meters of natural gas to his EU-member nation through the existing pipeline network through Russia. The two countries also signed a memorandum of understanding that will help ensure coordination on boosting global energy security, Parvanov said. "I believe that on the international level, we will begin to speak with one voice when it comes to supporting (energy security)," Parvanov said after a meeting with his Turkmen counterpart, President Gurbanguli Berdymukhamedov. Parvanov has backed a U.S.- and EU-backed Nabucco pipeline that could ease Europe's reliance on Russian energy. The route would run from the Caspian Sea across Turkey, Bulgaria, Romania and Hungary to Austria. But Parvanov also has signed a deal with Russia to build a pipeline under the Black Sea which Moscow has offered to underline Nabucco. Russia and the West has been competing for Turkmen and other Central Asian energy resources in what was widely compared to the 19th century "Great Game" race for domination in the region between the British empire and czarist Russia.
Source: econ.bg (20.12.2008)