NEK to save BGN 20 million from taxes The division of the National Electricity Company (NEK) and the operator of the high voltage network ESO must be done by market value so that the company saves BGN 20 million in taxes, Economy Minister Delian Dobrev said. He offers this to be written explicitly in the Energy Act. Otherwise, the transfer of assets will be at book value, which would increase them repeatedly. Another amendment that the Minister identified as urgent is the pipeline Nabucco that should be entered in the privatization law, so that part of it can be privatized and transferred to the consortium Shah Deniz 2, which will provide Azeri gas to Europe. SCEWR offered to enter into the Energy law that NEK and electricity suppliers CEZ, EVN and Energy Pro would not pay any more for green electricity. The money must come from a dedicated fund.
Source: Trud (27.02.2013)

TPPs stop because of the excessive sun and lower exports of electricity. Electricity System Operator (ESO) ordered the suspension of Units 3, 4 and 5 in Maritza East 2, and the second unit in TPP AES - Galabovo (formerly Maritza East 1) and two of 4 units at TPP ContourGlobal Maritsa East 3. This is due to the extremely low power exports, which fell because of the warm weather across Europe. Exports on March 3 was 130 MW at 950 MW on the same day last year. The energy system faces lack of control, said Mitiu Hristozov, Director Central Dispatch at ESO. In his words, because of the wind and solar plants, as well as for low power consumption, thermal power plants have shut down or production has been restricted to a minimum. In recent days, the consumption of electricity in the country is about 3,600 MW during the day. Domestic consumption has dropped by 1,200 MW from March 3, 2012.
Source: Standart (04.03.2013)

At an extraordinary sitting of the Consultative Council with the outgoing Energy Minister Delyan Dobrev on Monday, the minister ordered the Electricity System Operator (ESO) to take advantage of its right to limit renewable energy production whenever the electricity distribution network is endangered. The Council ordered for the country’s cold reserve to be reduced by 200 MW as of 1 April in order to lower the losses of the ESO, that is in a very deteriorated financial state. The head of the Bulgarian Energy Holding Mihail Andonov explained that the reduction will be made at the expense of the cold reserve of TPP Varna (owned by CEZ) and TPP Maritsa – Iztok 2. Meanwhile, it transpired that as of 5.30 p.m. on Tuesday there are new electricity prices in Bulgaria. CEZ clients now pay an average 7.17% less. The Bulgarian Energy Holding (BEH) and the Economy Ministry have begun negotiations with the two US owners of TPPs operating in Bulgaria - AES and Contour Global, regarding an electricity price reduction, the BEH Executive Director Mihail Andonov announced Tuesday. In his words, the two TPPs are willing to make discounts, but require guarantees that the next government will not ask for a further drop of prices, the Trud daily writes. The three power utilities will conduct an extraordinary report on the measurements of electric meters in relation to the average 7% electricity price cut as of 5 March. The companies will accept data on power consumption provided by clients. CEZ set a deadline until 11 March, EVN – until 8 March.
Source: Standart (06.03.2013)

In the middle of December 2012 a Chinese company under the name of V.Power issued application in the State Energy and Water Regulatory Commission for termination of its certificate for generation of electric power from wind park Milkovitsa, issued for a period of 25 years. The facility has a joint capacity of 80 MW and is situated in the region of Guliantsi municipality, near Pleven. The investment in 2010 is assessed to BGN 247 million. The reason for rejection of "Power C" from the project is that its grid connection can be done as far as in December 2017. Such procrastination with five years was explained by the National Electricity Company with the motive that there is no spare capacity till the end of 2016. In that case the National Electricity Company is obliged to return BGN 4 million to the company, as the determined guarantee for each park over 5 megawatts is to the amout of BGN 50 thousand per megawatt.
Source: Capital (13.03.2013)

Starting Monday, workers at Bulgaria's state-owned Maritsa Iztok Mines will switch to a two-shift regime from a four-shift regime due to the shrinking coal demand of the thermal power plants in the Maritsa Iztok Complex. The council of trade unions will hold a sitting Monday to discuss measures to solve the crisis, according to reports of the Bulgarian National Television (BNT). The capacity of the four thermal power plants in the Maritsa Iztok Complex has been reduced to 20%. Some units of the TPPs of the Complex were switched off by the Electricity System Operator (ESO) in the past two weeks due to the low electricity consumption in the country and the reduced export rates, which in turn reduced coal demand. Gencho Genchev, Chair of the Podkrepa Labor Union at the company, made clear that the step had made it necessary to send some of the workers on a forced leave while other had to switch to a 2-shift regime of work from a 4-shift regime. Representatives of trade unions at the Maritsa Iztok Mines have demanded a meeting with Bulgaria's caretaker Economy and Energy Minister Asen Vasilev and the State Commission for Energy Regulation (DKEVR) to draft urgent measures to solve the crisis. Meanwhile, trade unions at the Maritsa Iztok Mines will also meet Monday to discuss the steps that the miners should take. Genchev suggested that the meeting was likely to result in a decision to start protests, adding that if the Complex kept functioning at 20% of its capacity, this would "not only be fatal for Bulgaria's energy sector but will also leave thousands of miners and energy workers without a job."
Source: Capital (19.03.2013)

EVN Threatens to Sue Bulgaria over Electricity Dispute Energy company EVN has announced that it will take legal action against Bulgaria if it is unable to negotiate concessions over an electricity dispute. EVN AG has informed Bulgaria that it intends to to commence proceedings pursuant to the "Agreement Between the Republic of Austria and the Republic of Bulgaria for the Promotion and Protection of Investments" and the "Contract Regarding the Energy Charter" in order to safeguard its Bulgarian investments in EVN Bulgaria Elektrosnabdiavane EAD and EVN Bulgaria Elektrorazpredelenie EAD. The date of the announcement marks the beginning of the 3 to 6 month consultation and negotiation period under the agreements. During the course of such period, the parties are obliged to enter into negotiations and attempt to amicably resolve the dispute. "This announcement comes as the result of various actions taken by the regulatory authorities and other state agencies of the Republic of Bulgaria compromising the EVN companies," the Austrian energy group has stated in a press release. "These actions reduce the proceeds from the sale of electric energy. Moreover, by not acknowledging actual financing costs, the payment of feed-in compensation to which producers of renewable energy are entitled is reduced," EVN has argued. "Finally, today's announcement is in response to the repeal of a special levy for network access of renewable energy production installations by the recent decision of the Bulgarian administrative court in March 2013." Bulgaria's energy watchdog recently reduced electricity costs for households by an average of 7 percent, mainly at the expense of power distributors EVN, Czech CEZ and Energo-Pro. The move was triggered by nationwide protests against high utility bills and corruption that led to the resignation of Prime Minister Boyko Borisov and his center-right GERB government.
Source: Capital (20.03.2013)

The power of NPP Kozloduy fell by 700 MW Electricity System Operator (ESO) has ordered the NPP Kozloduy to reduce the power of the 5th and 6th block to prevent the collapse of the power system. ESO pointed out as reason the lower consumption and export, as well as the large flood, and hence - and production of hydro power plants. ESO did not answer the phone to confirm or deny the information, or to clarify whether besides the cheapest producer of renewable electricity it would also reduce other plants. The order of the ESO was to reduce the power of the 5th block to 750 megawatts, and of 6th - down to about 550 MW, however, confirmed the head of NPP Kozloduy Valentin Nikolov. That makes a total reduction of nuclear power by 700 MW. He explained that the measure would require the planned annual stopping of the 5-th block for repairs to be delayed by 2-3 days. Yesterday the state-owned Maritza East 2 worked with less than 430 megawatts in three of the eight blocks.
Source: Monitor (04.04.2013)

Bulgaria’s Electricity System Operator (ESO) said it imposed limits on electricity generation in the country due to imbalances between consumption and production. The limits concern all energy producers, including photovoltaic, wind, nuclear and thermal power plants, ESO said in a statement on its website late on Wednesday. Following the announcement, power distributors CEZ Razpredelenie Bulgaria [BUL:3CZ] and EVN Bulgaria said they will disconnect temporarily from the grid wind and photovoltaic plants. The measure affects all wind power and photovoltaic power plants in the western regions of Sofia, Pernik, Kyustendil and Montana between 0800 and 1500 GMT on Thursday, CEZ pointed out. The switchoff concerns also 40% of green energy producers in eastern Bulgaria from 0700 to 1400 GMT today, EVN said in its press release. Both companies said that if necessary they may adopt stricter measures. CEZ Razpredelenie Bulgaria is a local unit of Czech energy group CEZ. Its business covers the city of Sofia, the Sofia region and parts of western and northern Bulgaria. EVN Bulgaria is part of Austrian utility EVN. It provides electricity distribution services in southern and southeastern Bulgaria.
Source: Capital (05.04.2013)

Inspectorate at Bulgaria’s Council of Ministers to check Electricity System Operator The Inspectorate at the Council of Ministers and Public Financial Inspectorate are to carry out a check in the Electricity System Operator, mainly in the National Dispatching, Bulgarian Prime Minister Marin Raykov said at a press conference after the government’s meeting. Why the electricity from the so-called expensive power stations is prioritized and enters the system before the electricity from the so-called cheap power stations. Of course, the issue is much broader and much more comprehensive, said PM Raykov. Minister of Economy, Energy and Tourism Asen Vasilev announced that a working group was trying to solve the problems in mines after coal consumption slumped.
Source: Standart (11.04.2013)

Bulgaria's energy holding co rejects single bid for 250 mln euro loan The Bulgarian Energy Holding (BEH) said it turned down a bid by Deutsche Bank, the single candidate to extend a 250 million euro loan to the company, after it failed to meet the tender requirements. Deutsche Bank was disqualified because it failed to submit a document certifying it had paid the required guarantee, BEH said in a statement on its website last week. The tender procedure was canceled. BEH plans to borrow the money to refinance a credit taken out by one of its units, the National Electricity Company. Another option to raise the money which the holding company is contemplating is a bond issue. It has received six offers for an advisor to the planned issue. 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, the National Electricity Company and its wholly-owned system operator Electricity System Operator, coal-fired power plant Maritsa East 2 and the Maritsa East coal mines.
Source: mediapool.bg (16.04.2013)

BG state announces public orders for BGN 3 billion in H1 2013 The Bulgarian state has made more than BGN 3 billion public orders since the beginning 2013, the register of the Public Procurement Agency shows. The state and municipalities spend about the same so far as last year as contracts amounted to a little over BGN 6 billion for the whole of 2012. There were a total of 8755 announced contracts since the beginning of 2013 until the first week of June. Leaders in announced contracts are hospitals. First in the ranking of state-owned companies is the Electricity System Operator with 147 contracts, while the leader among ministries is the health department with 123 contracts. The municipality of Kazanlak was the most active local government with 62 procurement contracts since the beginning of the year. One of the interesting offers contracts for the development of new rules for air quality, light and noise protection for hospitals, schools and theaters. The construction ministry has made the public order for drawing rules for the construction of public buildings with money from the EU.
Source: Standart (12.06.2013)

BG industry consumes 37% less energy While the power need of the households has increased, industrial energy consumption share has dropped by 37% for the past 15 years, mainly due to the closure of facilities. Electricity consumption in Bulgaria will be between 35 and 45 thousand GWh in 2050, the head of the ESO "Energy Modes" department said during the "Energy Forum 2013" held in Varna. Stefan Sulakov also pointed out that the EU aims to reduce greenhouse gas emissions by 80% by 2050. According to the expert this will be achieved with high energy efficiency, which should reduce electricity consumption by 41% by 2050, as well as other measures.
Source: Standart (14.06.2013)

Mihail Andonov, Chief Executive Officer of the Bulgarian Energy Holding (BEH), has been dismissed. Andonov, former CEO of the National Electric Company (NEK), was appointed CEO of BEH in March 2012. According to a media statement posted on the website of Bulgaria's Ministry of Economy, Energy and Tourism, Dragomir Stoynev, Minister of Economy and Energy, has dismissed the Board of Directors of BEH including Mihail Andonov, Bozhan Stoyanov, and Todor Shopov. The newly elected members of BEH's Board of Directors are Boyan Boev and Georgi Hristozov. The media statement does not specify motives for the staff reshuffle at BEH. According to reports of Sega daily, the departure of senior officials of BEH comes at a time when the National Electric Company (NEK) is to spin off the Electricity System Operator (ESO). The delay by over one year of the spin-off transaction caused the European Commission to launch infringement proceedings against Bulgaria, mediapool.bg notes.
Source: Standart (19.06.2013)

Summer Heat Boosts Power Export from Bulgaria Summer heat and extensive use of air conditioners have boosted electricity consumption not only in Bulgaria but in the neighboring countries as well. This has resulted in the revival of power export which is a good news for the troubled energy system in Bulgaria. The amendments to the Energy Act that envisage lower power transfer fee and hence growing export have not been enforced yet, nevertheless the export has started to grow. In recent months the export of the Bulgarian electricity has grown by over 55 percent, show the report of the Electricity System Operator on the implementation inter-system exchange between Bulgaria and the neighboring states.
Source: Standart (25.06.2013)

Bulgaria’s State Energy and Water Regulatory Commission (SEWRC) decreases the price of natural gas for end-consumers by 0.15% for the third quarter of 2013 as of Monday, July 1. The price of natural gas per 1,000 cubic meters (VAT not included) is now BGN 630. This was the proposal of state-run Bulgargaz operator, too, which said that the company was ready to cut the gas price by around 0.15%.
Source: Capital (01.07.2013)

Standard&Poor's Ratings Services (S&P) affirmed its BB- long-term corporate credit rating on Bulgaria-based power utility Natsionalna Elektricheska Kompania EAD (NEK), the agency said on Friday. “At the same time, we removed the rating from CreditWatch, where it was placed with negative implications on Dec. 20, 2012. The outlook on NEK is negative,” the rating agency said in a statement. S&P also said in the statement: “The affirmation reflects our view that NEK's immediate refinancing risk has been eliminated following the refinancing of its ˆ195 million syndicated loan, which matured in May 2013. We understand that NEK's parent company, BEH, provided NEK with proceeds from a ˆ250 million bridge loan as an intragroup loan to repay the syndicated loan. We understand that BEH plans to refinance the bridge loan with a public bond issue at the BEH level. Furthermore, NEK sold its stake in the monopoly system operator ESO EAD to BEH, using the funds for the settlement of intragroup loans other than that NEK has just received from BEH. We understand that NEK will transfer three project-related credit facilities with total outstanding principal of ˆ50.8 million (at May 31, 2013) to ESO as part of the transaction. These actions will result in a material reduction in NEK's external financial bligations, which we forecast at about Bulgarian lev (BGN) 215 million at year-end 2013 (BGN734.0 million at year-end 2012). We understand that NEK's tariffs for the next regulatory period starting July 1, 2013, are still under negotiation. We are uncertain as to whether the new tariffs will reflect the continuing increase in costs for green energy and other electricity system costs in a full and timely manner. Moreover, the tariff review is to be completed in the context of recent changes in the Bulgarian government and regulator. This uncertainty weighs on our assessment of NEK's business risk profile. These factors, in combination with a contraction in domestic and export demand, resulted in NEK reporting a consolidated loss of BGN192.4 million in 2012. Our base-case scenario for 2013 factors in BGN120,000 of compensation for under-recovered costs over 12 months. We also deconsolidate the contribution of ESO from the second half of the year. Based on NEK's tariff application for the next regulatory period, we anticipate that NEK's Standard & Poor's-adjusted funds from operations (FFO) to debt will exceed 15% in 2013. In our forecast, we treat the intragroup loan from BEH as debt because it is funded by a short-term bridge loan on BEH's balance sheet, and has a short maturity and a lack of flexible terms. Nevertheless, we recognize that it is provided by what we consider to be a supportive strategic owner. We apply our criteria for rating parents and their subsidiaries to NEK and add two notches of parental support to NEK's stand-alone credit profile (SACP) of 'b'. The uplift reflects BEH's stronger credit quality than that of NEK due to BEH's stronger business risk position and cash flow generation, as well as its positive discretionary cash flows and significant cash holdings. Our assessment of NEK's 'b' SACP is based on our view of the company's "highly leveraged" financial risk profile under our criteria, which in our opinion mainly reflects its "less-than-adequate" liquidity position and aggressive financial policies. We assess NEK's business risk profile as "weak." This reflects the company's meager profitability and regulatory uncertainty owing to annual tariff resets by Bulgaria's State Energy and Water Regulatory Commission. Our assessment of NEK's business risk profile also factors in the legal unbundling of ESO, NEK's lowest-risk operations, and the uncertainty related to the Belene nuclear power plant project, which we understand is on hold. The negative outlook reflects our uncertainty as to whether NEK's electricity tariffs for the next regulatory period will cover the ongoing increase in electricity system costs. Full and timely pass-through of costs and a fair return on assets will be important for NEK to maintain its current business risk profile and, ultimately, the ratings. We could lower the rating if NEK is not able to achieve adjusted FFO to debt exceeding 12% on a sustainable basis, which we see as commensurate with its SACP of 'b'. In accordance with our criteria for rating parents and their subsidiaries, a downward revision of NEK's SACP by one notch would result in us lowering the long-term corporate credit rating on NEK to the same extent (as long as we assess BEH's credit quality as unchanged). In addition, any evidence of a weakening of the link between BEH and NEK could cause us to revise our approach of factoring in parent support to the SACP. We could revise the outlook to stable if we believe that NEK's financial risk profile has improved to "aggressive" from "highly leveraged" following a decision on tariffs in the next regulatory period and the unbundling of ESO. In particular, this will depend on NEK's ability to reach and maintain adjusted FFO to debt of more than 12% on a sustainable basis, alongside more conservative liquidity management.”
Source: Class (01.07.2013)

Ivan Ayolov, who was head of Elektroenergien Sistemen Operator (ESO) and was boss for two years of associated with Corporate Commercial Bank Company is appointed as Deputy Minister of Energy. He has a 37-year service in the system of energy distribution, the Ministry of Energy and NEC. He was Director General of Energoimpeks, CEO of Trafoservice AD and ESO. From 2010 he was appointed as the CEO of Techenergo EAD. Techenergo is owned by Energoremont holding and is indirectly connected with the boss and owner of Corporate Commercial Bank Tsvetan Vasilev.
Source: mediapool.bg (02.07.2013)

NEK and ESO exchange bosses Bulgarian Energy Holding (BEH), which includes NEK and ESO, exchanged some of the executives in both companies, and appoint a new one. The former executive director of NEK Ivo Levterov assumes the same position at ESO, from which is released Ivan Yotov. At the Board of Directors of the network company enters the new Deputy Energy Minister Ivan Ayolov, who was executive director there up to 2010. From NEK in the management of ESO is also transferred Kamen Todorov. Vladimir Inkov was appointed Executive Director of NEK, hitherto on the board of ESO and led procurements of BEH. At the Board of Directors of the National Electricity Company has been appointed another former Deputy Minister of Economy of the triple-coalition cabinet - Lachezar Bogdanov.
Source: Standart (03.07.2013)

Everybody against the cheap electricity Almost all companies in the chain production-transmission-distribution of electricity are against reducing their revenues and consequently the price. This became clear during the public discussion of the proposition of SEWRC for price reduction on 1 August with an average of 5%. Only the state-owned Maritsa Iztok 2 TPP had no objection against the intended selling price of energy. All other public and private companies said cuts in their incomes will lead to deleveraging and financial collapse. For 2012, the ESO reported BGN 38 million losses from the transmission of energy, and now they will increase if prices are accepted as such, warned CEO Ivo Lefterov. He added that ESO needs BGN 60 million to cover accumulated losses, which are now expected to rise. NEK complained that it will need BGN 50 million per month only for the payment of green energy, and these are not provided. The plans set by the regulator miss BGN 12 million revenues for repairs. EDCs reacted even more strongly, and their overall opinion is that with the lower prices they would "go to the emergency room." CEZ, EVN and Energo-Pro united around a strong reduction of their technological losses thet the watchdog provides. "The targeted figures are intended to stimulate you to reduce these losses," responded Elenko Bozhkov of regulator. The final decision on the new prices will be made on July 29.
Source: Standart (24.07.2013)

Head of TPP Varna: The new model limits our revenues and the costs grow With the new pricing model proposed by the State Energy and Water Regulatory Commission, revenue of TPPs is significantly limited and the cost increase, said Mincho Minchev, director of TPP Varna. "In the past regulatory periods, the watchdog set energy pricing below cost, and that logically led to financial losses of the plant. They are covered by the payment of cold reserve, where the three units of the plant are always ready to work. During the new regulatory period, however, the cold reserve, designated for purchase by ESO, was reduced drastically and tenders are scheduled. We will participate in them, but now there is no possibility for covering losses on account of such income. This puts us in a very difficult position," said Mincho Minchev.
Source: Darik Radio (26.07.2013)

Only NEK with higher price Only NEK received approval from the watchdog for higher price of electricity, by which will sell to the EDCs. So the cost of the public service grew by 21.05% from the current BGN 79.18 per megawatt without VAT to BGN 95.85. In addition, NEK will take 2.53% more for transport of high-voltage electricity starting tomorrow. Currently, the charge for this is BGN 9.47 per megawatt hour, and from 1 August is will be BGN 9.71. For all other participants in our power system regulator decided to drop prices at the expense of cutting costs. Besides selling at higher process to the EDCs, NEK will purchase energy more cheaply by manufacturers. The cost of energy from NPP Kozloduy fell by 10.76% from the current BGN 42.30 per megawatt hour to BGN 37.75. TPP Maritsa Iztok 2 who will sell 5.49% cheaper. Lower prices are introduced for TPP Bobov dol and TPP Varna, where tariffs fall by 19.55% and 3.34%. Energy from cogeneration and heat supply companies will also be cheaper. Thus, preferential prices for highly efficient electricity production from tomorrow fall between 0.004% and 13.24%. The fee for access to the network of ESO is reduced by 57.41% from BGN 6.48 to BGN 2.76.
Source: Standart (31.07.2013)

TPP Varna is likely to be finally made environmentally friendly, after three of its blocks are stopped. This is the only way the rest three operative blocks to function even after 2015. Public tender for offers became availbale last week. Still atmosphere in the company is not hopeful. Its quota of the regulated market is heavily truncated (approximately one month working at full power), and the company’s management keeps on repeating that actually TPP Varna makes a loss from the sale of electricity. Losses were covered by payments for winter reserves, which are bought by the Elektroenergien Sistemen Operator from the mids of the year at relatively lower prices. If the modernization fails the company might be forced to close. Bulgaria is obliged to bring all the power plants in accordance with the European Directive 2001/80 for reduction of emissions of harmful gases such as sulfur and nitrogen oxides. The order, announced by TPP Varna is assessed at EUR 60 million and has a term for completion 29 months.
Source: Capital (05.08.2013)

Bulgaria's Electricity Exports Reach 1600 MW/h Bulgaria's electricity exports have reached a level of 1600 MW/h, registering a substantial increase from the rate of 128 MW/h in May 2013, according to reports of the Ministry of Economy and Energy (MIET). The data received by the Electricity System Operator EAD was published by MIET on Wednesday. Over the past four days, a total of 94 000 MW/h of electricity were exported, or about the same amount of electricity exported during the whole month of May, 95 000 MW/h. Thermal power plants operated at a load of around 2600 MW/h during daytime, while their nighttime output exceeded 3000 MW/h. The peak loads on the power supply system were registered in the hours between 1 pm and 3 pm due to the hot summer temperatures and the need to use air conditioners. The total production of electricity by TPPs on Tuesday amounted to 68 000 MW/h. According to MIET, this triggered an increase in the production of coal in the country and to the achievement of targets of over 75 000 tonnes only on Tuesday, a fair amount for a summer month. Bulgaria's Energy Ministry argues that the good results were achieved thanks to a set of recently adopted Energy Act amendments.
Source: money.bg (08.08.2013)

Bulgarian electricity export rockets from 128 MW to 1,600 MW per hour The electricity exported from Bulgaria rocketed to 1600 MW per hour from just 128 MW per hour in May 2013, the Ministry of Economy and Energy announced . The 94,000 MWh exports in the last three days of July almost equaled the 95,500 MWh exports in May as a whole. The thermal power plants in daylight load in average 2600 MWh. Their evening output generally exceeds 3,000 MWh. The peak load of the power system occur between 1 pm and 3 pm due to the higher usage of air conditioners in the high temperatures.
Source: Standart (08.08.2013)

The state Elektroenergien Sistemen Operator, which manages basic electric network in the country will have new managers, BEH (Bulgarian Energy Holding) has decided. This will happen just two months after the present CEOs of the company were appointed. CEO of the company will be the ex-advisor of State Energy and Water Regulatory Commission Valentin Kolev, who is manager of Elcontrol OOD. He replaces Ivo Lefterov. After two months in the company Kamen Todorov will vacant his position in favour of Severin Vartigov.
Source: Trud (10.09.2013)

Photovoltaic Association Seeks International Audit of Bulgarian Energy Holding The Bulgarian Photovoltaic Association (BPVA) has called for an independent audit by an international authority of the Bulgarian Energy Holding (BEH) and its subsidiaries, the National Electric Company (NEK) and the Electricity System Operator (ESO). The step was requested over a recent letter of BEH proposing the introduction of a 30% tax on photovoltaic power plants and restrictions on the output of all producers of renewable electricity, according to Meglena Rusenova, BPVA Chair, as cited by the Bulgarian Telegraph Agency (BTA). Rusenova commented that the proposal of BEH to use the funds raised through the tax for capitalizing NEK as "absurd and scandalous," adding that pouring money into unreformed state-owned energy firms would deepen the crisis in the sector and there would be no transparency about how NEK or BEH would use the proceeds. "We insist on an audit by an international body, which should recommend measures for restructuring BEH, which was also mentioned in the World Bank report published in Bulgaria on May 27, 2013,"the BPVA Chair declared. She said that giving up on reforms in state-owned energy firms actually denoted a refusal to upgrade the energy sector and an unwillingness to keep track of global development trends in the sphere. She said that an example of this was the obstructions placed byBEH subsidiaries like NEK and ESO before the launch of the balancing market. She informed that the BPVA members would announce their next steps after the government came up with an official stance of the proposal of BEH.
Source: Dnevnik (07.10.2013)

Export of electricity jumped 16 times Export of electricity from Bulgaria to neighboring countries increased about 16 times in late September from early June, when the crisis in the Bulgarian power generation was in full swing, according to data from ESO for interconnecting physical flows of electricity between Bulgaria and Serbia, the Republic of Macedonia, Greece, Turkey and Romania. The reasons for the significant growth in the export of electricity are complex, experts commented. On one hand, there is increased energy consumption in Bulgaria's neighboring countries. But a significant impact comes from the reduced export tax on Bulgarian electricity. As a result of the higher export, electricity producers use their capacities more fully, revenues in individual energy companies increase, as well as in the state budget, and jobs are kept.
Source: Standart (07.10.2013)

Electricity System Operator will take over the grid Bulgaria's Electricity System Operator (ESO) is set to take over the grid, currently run by the National Electric Company (NEK), as well as its asset-backed debt to banks. A new model for the redistribution of the companies is being discussed with NEK's creditors, revealed Deputy Minister of Economy and Energy, Ivan Ayolov. The splitting of NEK and ESO is a requirement under the Third Energy Liberalization Package of the European Commission. Bulgaria decided that ESO, which is a subsidiary of NEK should be transferred to the Bulgarian Energy Holding (BEH), which owns NEK. It has become clear, however, that some of the creditors of NEK disapprove the transfer of assets to ESO due to the lack of an acceptable financial model and risks associated with the repayment of loans. Ayolov clarified that the new model is ready and has been consulted with the European Bank for Reconstruction and Development, the European Investment Bank, and Credit Swiss Bank, which is among the nine creditors of NEK, novinite.com said. Due to the delay of adopting the Third Energy Liberalization Package, Bulgaria is threatened with EUR 8448 daily fines if the EC Court in Luxembourg decides against the country.
Source: econ.bg (09.10.2013)

Bulgaria's BEH Raises EUR 500 M from Bond Issue Bulgaria's state energy holding company BEH has raised EUR 500 M, the company announced as the early signing for its bond issue on international market was wrapped up. The company initially planned a EUR 250 M bond issue, needed to refinance debt which matures in May. The bond issue, which will cover the bridge financing, is for five years with an interest rate of 4.287%. BEH was incorporated in 2008 with a decision of the then ruling Socialist-led government. BEH EAD is a shareholding company with 100% state owned participation. The Holding includes Mini Maritsa Iztok EAD, Maritsa East 2 TPP EAD, Kozloduy NPP EAD, NEK EAD, Electricity System Operator EAD, Bulgargaz EAD, Bulgartransgaz EAD and Bulgartel EAD. All companies, brought together in the holding structure, preserve their operational independence and licenses, as they are all owned and directly subordinated to the corporate center BEH EAD. The Bulgarian Energy Holding EAD is one of the largest companies in the region, and national energy leader. Bulgaria tapped last summer international markets to raise funds to repay the first tranche of about EUR 835 M (USD 1.07 B) in 11-year Eurobonds, which matured on January 15, 2013.
Source: Capital (04.11.2013)

Bulgaria's BEE eyes power exchange operator permit, TSO partnership The Bulgarian Energy Exchange AD (BEE) company said on Wednesday it has applied for a permit to operate a power exchange and has invited the country's power transmission system operator, ESO, to join its shareholding structure. BEE said in a statement it was co-founded by the European Power Exchange, EPEX SPOT SE, and Italy's Terna and Edison, among others. No one at the State Energy and Water Regulatory Commission (SEWRC) could be reached on Wednesday to confirm the receipt of the permit application. BEE, whose statement listed no website or any other contact details, said it has also co-founded with its EU-based partners Bulgarian Clearing Company AD which will provide financial and technical clearing services for the planned power exchange. Talks with ATOS SE on the supply of an electronic trading platform for the planned exchange are at an advanced stage, the statement added. ESO had earlier applied to run a day-ahead electricity trading market - planned to start operations in early 2014, but last month SEWRC said the application had been pulled.
Source: Monitor (07.11.2013)

Bulgaria’s ESO, NEK seek energy regulator's nod for split-up Bulgaria's Electricity System Operator (ESO) and national electricity company NEK are seeking the approval of the country's energy regulator for their ongoing split-up, the watchdog's director was quoted as saying on Thursday by local media. The State Energy and Water Regulatory Commission (SEWRC) received a couple of days ago the split-up documents of the two companies, Anzhela Toneva said at a meeting of the parliament's energy committee, according to daily Standart. Initially, Bulgaria planned to complete the unbundling by the end of June this year, but the process was delayed and is expected to be completed by Christmas, Standart said, quoting a statement of a senior government official made earlier this year. The unbundling of the two companies is required under the EU’s Third Energy Liberalisation Package. After the separation, all contracts will be reviewed and adjusted to EU regulations, if needed. Following the split-up, ESO will perform all activities associated with construction, maintenance and connection to the country’s power grid, as well as the functions of measuring and reporting electricity consumption, which are currently provided by NEK. Bulgarian Energy Holding (BEH) took full control of ESO from NEK this summer. The holding company was set up in 2008 and controls Mini Maritza-Iztok, NEK, ESO, Bulgargaz and the country’s sole nuclear power plant Kozloduy.
Source: money.bg (08.11.2013)

Bulgarian Economic Ministry signs EUR 85M contracts for the decommissioning of Kozloduy NPP The Bulgarian Ministry of Economy and Energy and the sponsors of the Kozloduy International Decommissioning Support Fund signed five new grant contracts in the value of over EUR 85 million. While EUR 35 million will be spent on new machines to improve the capacity of the Maritsa Iztok Mines and for the upgrade and expansion of the central dispatching unit of the Electricity System Operator (ESO), the remaining EUR 51 M will be paid to the workers participating in the decommissioning activities at the Kozloduy NPP in the period 2014-2016. Two other agreements were also concluded: one for supporting the energy efficiency fund and renewable energy sources and another to construct gas transmission networks with automatic stations to the towns of Svishtov, Panagyurishte, Pirdop, Bansko, and Razlog. Sofia. Bulgaria's Kozloduy NPP reported BGN 5.8 million loss for the first half of 2013, The negative result came after a BGN 90 million profit in the comparative period last year.
Source: Standart (18.11.2013)

Management Team of Bulgarian Stock Exchange to Change in Jan 2014 The management team of the Bulgarian Stock Exchange will be changed in two months, according to the agenda of the general shareholders' meeting scheduled for January 14, 2014. The meeting is initiated by Bulgaria's Finance Ministry, which holds a 50.05% stake of the capital of the Bulgarian Stock Exchange (BSE). The only point on the agenda of the upcoming general meeting of shareholders of the BSE is changes to the Board of Directors, according to dnevnik.bg. The Board of Directors is currently headed by Asen Yagodin, who also headed the Bulgarian Development Bank (BDB) until recently. The Deputy Chairman of the Board of Directors is Vasil Golemanski, Ivan Takev is Chief Executive Officer, and Lyubomir Boyadzhiev and Georgi Balgarski are members of the Board of Directors. Meanwhile, speaking Monday at a conference on the access of Bulgarian businesses to financial instruments offered by international financial institutions, Deputy Prime Minister Daniela Bobeva confirmed that the privatization procedure for the Bulgarian Stock Exchange, which had been suspended by the center-right GERB government, had been renewed. She said that a strategic investor was sought for the BSE that would revitalize the capital market in Bulgaria. Bobeva, as cited by the Bulgarian Telegraph Agency, informed that the Central Depository would also be privatized. She also made clear that the administrative burden would be substantially reduced to encourage the listing of Bulgarian companies on the BSE.
Source: investor.bg (19.11.2013)

Bulgaria’s anti-trust regulator fines power distributor BGN 1mln Bulgaria’s Commission for Protection of Competition imposed a fine of BGN 1,034,755 to Energo-Pro Drid AD district power distribution company for abuse of a dominant market position, as seen in an official decision of the commission made on November 20, which was published today at the official website of the regulator. The Commission has ascertained abuse of a dominant market position at the power distribution market through managing non-proportionally the production capacities attached to the grid, which is a violation under Article 21 of the Competition Protection Act. The Commission has imposed a financial sanction of BGN 1,034,755 and a behavioural remedy, which requires the company to manage the production capacities attached to its grid in a way that guarantees equality among the different electricity producers. The proceeding was initiated at the request of a producer of electricity from renewable energy sources (RES) attached to the grid of Energo-Pro.
Source: Agency Focus (26.11.2013)

Elektroenergien Sistemen Operator has not yet handed out application for an operator of the energy stock exchange. In the meantime company’s CEO said that it hasn’t given up the idea but at present ESO’s priority is launch of a balancing market. State Energy and Water Regulatory Commission announced that another company Balgarska energijina borsa JSC has also applied. The initially announced participants in the procedure are Italian electric energy system operator Terna S.p.A, Italian electricity and gas company Edison SpA and the European Exchange EPEX SPOT. On November 5, Chair of the regulator said that there is a candidate for exchange operator on the electricity market. Then it became clear that Balgarska energijina borsa has expressed its desire for getting a license to organize exchange market of power on the 01.11.2013.
Source: Class (27.11.2013)

Bulgaria's electricity co NEK 10-mo loss reaches EUR 49 mln Bulgaria’s state-run electricity company NEK has generated a loss of some BGN 96 million for the first ten months of 2013, the company’s deputy chairman was quoted. For the past quarter alone, NEK reported a loss of some BGN 63 million, Ventsislav Markov was quoted as saying at the parliament by local daily Sega. The company should have received BGN 140 million in compensation for buying costly renewable energy for the first three months of the year, but NEK has received only half of the amount so far, Markov added.
Source: Sega (05.12.2013)

Bulgarian energy branch reshuffle: Ivan Jonchev named as new director of Bulgarian Energy Holding Financier Ivan Jonchev is the new director of the Bulgarian Energy Holding (BEH). He is taking the place of Bojan Boev, who resigned as he was elected President of the State Energy and Water Regulatory Commission on Wednesday. Ivan Jonchev has been a member of the Board of Directors of Mini Maritsa Iztok since October. His appointment is the latest chapter of the major reshuffle in the Bulgarian energy sector which started a few days ago. State Energy and Water Regulatory Commission President Angela Toneva handed in her resignation allegedly to become a governmental advisor. Bulgargas head Shishman Chaoushev also resigned last week, after only being appointed in November. His chair will be taken by Dafinka Iankova, the head of BEH's auditory body. Chaoushev, in turn, will become the new director of the Electricity System Operator.
Source: Novinar (16.12.2013)

New development on the energy exchange The state has registered the company Bulgarian Independent Energy Exchange, which will be the operator of the stock market of electricity, said Minister Stoynev in an interview. A check in the Commercial Register showed that a company with such a name had not been registered and the Ministry of Economy and Energy did not respond to a request for more information on the topic. One person cannot appoint the management of network transmission operator while controlling manufacturing companies and supply, wrote in an open letter the private company Bulgarian Energy Exchange, referring to the EU directives. The reason is that it is assumed that the new company will be within the BEH. Bulgarian Energy Exchange claimed to have experienced partners such as the European bourse the European Power Exchange and the Italian company Edison. Both companies, however, have denied any connection with the Bulgarian company. Valentin Kolev, who until last week headed the State Electricity System Operator (ESO), explained that only ESO can be exchange operator and the exchange will start after the separation of ESO from NEK.
Source: Capital (20.12.2013)