Electricity consumption above all forecasts Electricity consumption of 6,696 MW was recorded on 31 December, 2011 at 19:00 hrs, reported officials from the Electricity System Operator. The dispatchers’ forecast was for 6,476 MW. Gross electricity consumption on 31.12.2011 was 130,530 MW, given that 122,329 MW were expected. The maximum load of the electricity system in the country was noticed on 1 January at 20:00 hrs, when the reported consumption reached 5,261 MW. Gross electricity consumption during the first day of 2012 stood at 112,521 MW with a forecast of 111,560 MW. On 2 January, electricity consumption reached about 5,000 MW. Officials from the EVN Bulgaria Electricity Distribution Company - Plovdiv even reported revenues of about BGN 4.95 mln from the energy consumption of household subscribers on 31 December alone. “There was an increase of 4 % on 31.12.2011 and it was mainly due to the company’s subscribers from 9 areas in South-eastern Bulgaria,” announced officials from the electricity distribution company in Plovdiv. In general, increased consumption was registered in the period 31 December 2011 - 2 January 2012, while the peak was on the last day of the old year.
Source: Class (04.01.2012)

Economic ministry will decide what stake of BEH to list on the stock exchange Within a week or two, the economy ministry must decide minority stakes in state-owned energy companies that will be sold on the exchange, said in an interview with newspaper "24 Chasa" Deputy Prime Minister Simeon Djankov. He indicated two options - for a package of Bulgarian Energy Holding shares or shares of "Bulgartransgaz" and Electricity System Operator. Before Christmas, Economy Minister Traicho Traikov explained that it is considered the option of placing 15% of the energy holding the stock exchange. Government's intentions are to retain up to 66% of large energy companies. Intentions are the sale of packages to be implemented by the end of 2012. I think the more attractive it will be BEH, because there is diversification. BEH will arise interest of German and Austrian pension funds," Djankov said. The government will intervene aggressively in the pricing of goods and services to protect consumers. Deputy Prime Minister acknowledged that the financial and economic ministry have few rights, but certain products have higher prices without clear reasons. He did not specify whether the prices of electricity, heating and water, which are fixed by the formal independent State Energy and Water Regulatory Commission, will be subject to interference.
Source: 3e-news (05.01.2012)

Four companies want to consult the ESO separation from NEK Four companies have submitted bids and indicated the price and conditions under which they would consult the Bulgarian Energy Holding (BEH) for separation of Electricity System Operator from the National Electricity Company (NEK), Deputy Minister of Economy and Energy Delyan Dobrev said. The deadline for submission of expired on 10 February. Nine companies declared Interest in the proceedings. Dobrev, who is chairman of the board of directors of BEH, declined to give details. Bids evaluation will be delayed by a week and will be ready in March. Consultant will negotiate with creditor banks on restructuring of NEK loans. This calls for because ESO will be separated along with the grid that serves as collateral on loans. NEK negotiates with BNP Paribas for rescheduling by year the allocated 250 million euro for preparation of the project for construction of NPP Belene, Dobrev said. The maturity is in May. After choosing of consultant, it will participate in negotiations. "Project" Belene "and 3 million BGN a day are ticking because of commitments taken under the project," said Minister of Economy and Energy Traicho Traikov on the occasion of allegations of MP "Coalition for Bulgaria" and former Energy Minister Rumen Ovcharov for delaying the decision and stopping its construction.
Source: 3e-news (17.02.2012)

Bulgaria to Liberalize Energy Market "With the adoption of the amendments to the Energy Act, Bulgaria will correspond to the European directives for liberalization of the gas and energy and power market," stated Bulgaria's Deputy Minister of Economy and Energy Delyan Dobrev in line with EC warning that Bulgaria fails to observes the rules of the EC and may be sanctioned. "The reason for the critics is that the National Electric Company (NEC) has not been separated from the Electricity System Operator (ESO)," Mr Dobrev stated. A contract with the consultant on the separation of the two companies could be signed within a month. The term for the separation is 9 months. In the first 3 months the consultant will make analysis on then best way to separate the companies and how to restructure the assets and arrears to NEC. The second three months are for the real separation of the companies and the last three months are for the clearing the remarks," Mr Dobrev added.
Source: Standart (29.02.2012)

Stara Zagora mayor Zhivko Todorov proposed to move Bulgarian Energy Holding SPJSC and Elektroenergien Sistemen Operator SPJSC in the city. The initiative is supported by the Chamber of Commerce and Industry, Club of the employers, representatives of both unions. We support the idea of decentralization, because besides creating new jobs, it allows regional development, said the mayor of Stara Zagora. The proposal will be formally submitted along with photos, a proposal for premises and financial statement. Besides BEH and Elektroenergien Sistemen Operator, in Stara Zagora can be moved the Agency for Selection and Reproduction in Animal Breeding, National Grain Office, Agricultural Academy. It is yet to be calculated what resources will be needed to repair the buildings to house the state structures.
Source: Darik Radio (28.05.2012)

Bulgarian engineering, construction and energy group Enemona said that the value of the new construction and engineering contracts it signed in May totaled BGN 3.47 million ($2.2 million/1.8 million euro), VAT excluded. The company sees its total revenue at BGN40.5 million in the second quarter of 2012, down from BGN 42.6 million in the same period last year More than half of the company’s turnover comes from construction and contracts from energy efficiency. The biggest contract was signed with Electricity System Operator (ESO), the Medical University - Sofia and the German Loibl Allen-Sherman-Hoff. The company will work on energy efficiency of the Hospital St. Panteleimon in Plovdiv.
Source: Capital (15.06.2012)

OZK will receive electricity State-run National Electric Company will continue to supply OZK with electricity, despite the outstanding liabilities, said Economy and Energy Minister Delyan Dobrev. The two companies will have to reach an agreement on how the BGN 125-thousand in outstanding bills will be acquitted. Largest creditors of OZK at the moment are commercial banks. According to trade unions even the zinc in company furnaces was used as collateral for a loan from BNP Paribas. The credit institution insists on the zinc to be taken out of the furnaces and sold. Yesterday morning 50 workers formed human chain to hamper access to the plant’s induction furnaces. Their intention as to stop workers hired form the creditor bank to take the 50 tons of liquid zinc.
Source: Trud (25.07.2012)

Electricity exchange in search of depositary bank The project for setting up an electricity exchange in Bulgaria has entered its final stages. One of the things that the Electricity System Operator (ESO) is supposed to do now is to choose a depositary bank to administer the financial flows and manage the financial risk on the deals. ESO launched a tender for that purpose and the depositary bank should be selected by year end. Apart from that, there are some legislative changes that should take place before the electricity markets opens for traders. According to ESO, that may happen sometime in mid-2013. Traders will be the so-called coordinators of balancing groups under license regime from SEWRC. According to ESO, there will be roughly around 30 market players and the electricity exchange will initially cover 5-10% of the nation’s annual power consumption (1600 - 3200 Gwh a year). The rest of the deals on the unregulated market will be concluded with bilateral agreements and will account for 90% of the traded electricity. Vladimir Dichev, executive director of CEZ Trade says that a third of the traders will show preference for the future electricity exchange. In his words, if export fees for electricity go down, traded volumes would go through the roof. For CEZ Trade it will be easier to trade on the electricity exchange, as it allows for smoother correction of shortcomings, Mr. Dichev explains.
Source: Capital (12.10.2012)

The revenues of the Bulgarian Energy Holding (BEH) JSC for the first nine months of 2012 were double the amount for the same period of last year, showed the published financial report of the Finance Ministry. The gross profit for January-September is almost equal to the revenues, totaling BGN 560.86 mln, while last year’s profit before taxes was BGN 235.1 mln. The gross profit of Bulgartransgaz for the period amounted to BGN 94 mln, up from BGN 83 mln last year. The Kozloduy NPP concluded the first nine months of 2012 with a pre-tax profit of BGN 142.6 mln, compared to BGN 178.2 mln for the same period of last year. The company’s revenues amounted to BGN 655.1 mln, registering a slight decrease of 2.4%, compared to the same period of 2011. Proceeds from electricity accounted for the largest share (95%) in the structure of revenues from the overall operation of the plant. These decreased by BGN 25.75 mln (4.03%), mainly due to the 3% drop in the electricity sold during the period, compared to 2011. The costs incurred for the activities of Kozloduy NPP amounted to BGN 515.4 mln. For the first nine months of 2012, another company of BEH – the National Electric Company (NEK) accumulated a loss of BGN 77.2 mln, compared to a profit of almost the same amount for January-September 2011. This is due to the low selling wholesale prices of electricity on the regulated market, as the company has already warned. However, after the hike of electricity prices as of July 1, 2012, NEK posted a profit for Q3 of the year, as per preliminary data.
Source: Trud (05.11.2012)

The National Electricity Company (NEK) and the Electricity System Operator (ESO) are at a loss, but prepared for winter regardless, the directors of the two companies stated at a sitting of the parliamentary Economy Committee. CEZ reported that it has 40 emergency teams, 70 cross-country vehicles, and has begun introducing satellite phones. There is so far no final report by investigative authorities on what the reason for the blast at the power substation in Burgas is.
Source: Darik Radio (23.11.2012)

A court in the Bulgarian city of Varna has declared local chemical products maker Polimeri [BUL:51P] insolvent, the company said on Tuesday. The court approved on December 12 an insolvency request against Polimeri filed by the Electricity System Operator (ESO), the chemical company said in a statement to the Sofia bourse. A meeting of the company’s creditors is scheduled for January 29, the statement added. Polimeri's liabilities to ESO amount to some 36,000 levs ($24,200/18,400 euro). Last year, the chemical producer posted non-consolidated net loss of 10.04 million levs.
Source: Capital (19.12.2012)

The state-run Bulgarian Energy Holding (BEH) expects to post a profit of some 36 million levs ($24.4 million/18.4 million euro) this year on gross revenue from sales of 6.46 billion levs, the company’s chief executive officer said on Thursday. The company plans a bond of no less than 350 million euro ($465.1 million) in 2013 and expects to be assigned a credit rating by Fitch by the middle of January before proceeding with the issue. It has not been decided how the proceeds will be spent, Mihail Andonov told a press conference in Sofia. BEH (www.bgenh.bg) incorporates assets of Bulgaria's sole nuclear power plant Kozloduy, gas monopoly Bulgargaz, gas transmission system operator Bulgartransgaz, telecommunications operator Bulgartel, NEK and its wholly-owned system operator Electricity System Operator, coal-fired power plant Maritsa East 2 and the Maritsa East coal mines. The company’s assets equal 12.8 billion levs while its capital is 8.84 billion levs. About 22,600 people work for BEH.
Source: Capital (21.12.2012)

Japanese Companies to Build Smart Networks for NEC Japanese companies Mitsubishi and Hitachi will construct the so-called smart networks along the Bulgarian power distribution mains. The step was negotiated during the visit of Bulgaria’s minister of economy, energy and tourism, Delyan Dobrev, to Japan, the CEO of the Bulgarian Energy Holding (BEH), Mihail Andonov, informed. “Negotiations are underway between the National Electric Company (NEC), the Electricity System Operator and the Japanese companies in order to specify when and how the work on the pilot project would start. Most probably the site of the project will be northeastern Bulgaria where wind farm Kaliakra Wind Power, owned by Mitsubishi Heavy Industry is located,” Mr Andonov stated. The purpose of the smart networks is to reduce the power losses along the power mains. The networks will also make sure that the generated at a certain moment power corresponds to the consumption of power in the country and the power export. The BEH and its daughter company NEC have already started negotiations with banks for revision of the credit conditions and renegotiations of the received credits.
Source: Standart (21.12.2012)