Bulgarian Energy Exchange applied for independent transmission operator Bulgarian Energy Exchange applied to the State Energy and Water Regulatory Commission for a license for an independent transmission operator of electricity. The request was lodged on 27 December. Independent transmission operators play important role in balancing the market. Under the legislation, those participants in the energy market, as well as operators of distribution networks, buy electricity only to cover the cost of technology networks for each interval of delivery. However, the independent transmission operator activates the balancing power sources to maintain balance and ensure reliable and safe operation of the power system. It also administers the balancing energy market. Bulgarian Energy Exchange applied for a license for an energy exchange in early November.
Source: investor.bg (06.01.2014)

Bulgaria’s energy regulator gives nod to NEK, ESO split-up The Bulgarian energy regulator has given its approval to the split-up of state-owned electricity company NEK and Electricity System Operator (ESO). As a result of the unbundling, NEK will transfer to ESO some BGN 64.3 million in debts, which will bring the grid operator's current liabilities to BGN 102.7 million, the State Energy Regulatory Commission's decision dated December 18 showed. The electricity company will also transfer to its former unit BGN 2.2 billion in assets, including 295 substations and an electricity transmission network of 14,732 kilometres. Furthermore, ESO receives a 35-year electricity transmission licence. The approval takes effect upon its entry in the commercial registry, the energy regulator said. 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. Bulgarian Energy Holding (BEH) - a holding company set up in 2008 which controls Mini Maritza-Iztok, NEK, ESO, Bulgargaz and the country’s sole nuclear power plant Kozloduy - took full control of ESO from NEK in 2013.
Source: Darik Radio (07.01.2014)

Bulgarian Energy Holding about to create a new energy exchange controller The Bulgarian Energy Holding (BEH ) is registering a company to manage the energy market . The main purpose of the entity will be to „organize the exchange market for the trading of energy," the explanation in the Commercial Register says. The company, named "Independent Bulgarian Energy Market“ will deal with electricity , gas, coal , emissions and green certificates and will be led by Konstantin Konstantinov. Its capital will 100 % owned by BEH. The Board of Directors also includes Nina Chuparova and Viara Marinova.
Source: investor.bg (13.01.2014)

Bulgaria’s Electricity System Operator to be modernised with financial resources from EBRD Mr Vince Novak from the European Bank for Reconstruction and Development (EBRD) and Shishman Chaushev, Executive Director of Bulgarian Electricity System Operator (ESO) have signed an agreement today, FOCUS News Agency reported. The agreement envisages for modernisation and expansion of the SCADA/EMS systems and guarantees [the availability of] software resources to the Central Dispatching management of ESO.
Source: Agency Focus (20.01.2014)

Germany seeks BGN 33.8 million from OZK Germany is looking for BGN 33.8 million from bankrupt Lead and Zinc Complex (OZK). The Federal Republic has issued a state guarantee on a loan agreement between the French bank BNP Paribas and the plant. This is clear from the list of creditors of OZK, adopted by the trustee Alexander Georgiev. The biggest creditor of the plant is BNP Paribas - a total BGN 106.5 million. The Swiss branch of the institution has allocated BGN 93.7 million. Further BGN 12.82 million was credit agreement with the French parent bank. First Investment Bank is looking for BGN 28 million. Upon sale of the property of the plant, banks will get their money first, because have secured claims with pledges. According to a report from October 31, 2013 OZK’s assets amount to BGN 166.5 million, but any sale proceeds could be lower. Among other major creditors of the plant are Seychelles' Walldrop (BGN 72 million), state-owned companies Electricity System Operator (BGN 513 thousand) and NEK (BGN 493 thousand). National Revenue Agency has to take nearly BGN 3 million from OZK for unpaid taxes, insurance, fines and taxes. The trustee has accepted the claims of 123 employees of the complex. Curiously, the majority owner and chairman of the supervisory board of OZK Valentin Zahariev has been awarded BGN 11,642 of unpaid wages. His sons are also in the queue - Peter Zachariev has to receive BGN 7,851 and Kiril Zahariev – BGN 6,133. Before OZK was declared insolvent at the end of last year, part of the company's property was sold at public auction. In 2012, zinc production plant was acquired by Harmony 2012, part of the assets were bought by First Investment Bank. In November last year Harmony 2012 acquired another 44 acres of land. At another public auction FIB bought the hut Akatsia, near the lake Kardzhali.
Source: Presa (29.01.2014)

Bulgaria's BEH says NEK, ESO split-up completed Bulgarian state-owned electricity company NEK and Electricity System Operator (ESO) completed on February 4 the last phase of their split-up, regarding the unbundling of the ownership of the network and the associated assets, the Bulgarian Energy Holding (BEH) said on Wednesday. The unbundling will allow ESO, as the owner of the grid, to start the process of its certification as an independent transmission operator as a further step in the development of a competitive and financially stable energy market, BEH said in a press release. The split-up of the two companies is required under the EU’s Third Energy Liberalisation Package. Bulgarian Energy Holding (BEH) - a state-owned holding company set up in 2008 which controls Mini Maritza-Iztok, NEK, ESO, Bulgargaz and the country’s sole nuclear power plant Kozloduy - took full control of ESO from NEK in 2013.
Source: investor.bg (06.02.2014)

Bulgaria Has Achieved its 2020 Renewable Energy Target Bulgaria, Estonia and Sweden have achieved their 2020 renewable energy targets, according to Eurostat. The share of renewables in gross final energy consumption is one of the headline indicators of the Europe 2020 strategy. The target to be reached by 2020 for the EU28 is a share of 20% renewable energy use in gross final energy consumption. The national targets take into account the Member States' different starting points, renewable energy potential and economic performance. In 2012, Bulgaria's share of renewables in gross final energy consumption stood at 16.3%, against a target of 16% for 2020. In 2004, Bulgaria's share of renewables in gross final energy consumption amounted to 9.6%, increasing to 14.4% in 2010 and to 14.6% in 2011. In 2012, energy from renewable sources was estimated to have contributed 14.1% of gross final energy consumption in the EU28, compared with 8.3% in 2004, the first year for which this data is available. Largest increases in share of renewables between 2004 and 2012 in Sweden, Denmark and Austria. Since 2004, the share of renewable sources in gross final consumption of energy grew in all Member States. The largest increases during this period were recorded in Sweden (from 38.7% in 2004 to 51.0% in 2012), Denmark (from 14.5% to 26.0%), Austria (from 22.7% to 32.1%), Greece (from 7.2% to 15.1%) and Italy (from 5.7% to 13.5%). The highest shares of renewable energy in final energy consumption in 2012 were found in Sweden (51.0% of energy from renewable sources in gross final consumption of energy), Latvia (35.8%), Finland (34.3%) and Austria (32.1%), and the lowest in Malta (1.4%), Luxembourg (3.1%), the United Kingdom (4.2%) and the Netherlands (4.5%). In 2011, Estonia was the first Member State to reach its 2020 target and in 2012 Bulgaria, Estonia and Sweden already achieved their 2020 targets (16%, 25% and 49% respectively).
Source: Capital (11.03.2014)

Bulgaria’s nuke plant posts 38 mln euro profit in Q1 Bulgaria's sole nuclear power plant (NPP) Kozloduy generated a profit of BGN 74 million in the first quarter of 2014, up from expected BGN 67 million, Kozloduy’s CEO said on Monday. The NPP’s lost profit estimated at 8.0 million levs as a result of the limits on electricity generation imposed by state-run Electricity System Operator (ESO), Ivan Genov said in an interview for public radio broadcaster BNR without specifying the period in question. Kozloduy’s losses related to the trade on the regular market, where the electricity price is determined by the the State Energy and Water Regulatory Commission (SEWRC) and is less than the cost of production, are compensated from the sale of electricity on the free market. The NPP generates some 60% of its revenue on the free market, where it sells 45% of its total production. Kozloduy closed 2013 at a profit of BGN 40 million, Genov said in the interview. Kozloduy generates 35% of the overall electricity produced in Bulgaria. The Kozloduy NPP remained with two operational reactors of 1,000 megawatts (MW) each after the country closed down four units of 440 MW each to address nuclear safety concerns of the European Union prior to its accession to the bloc. Bulgaria joined the EU in 2007. In April 2012 the government decided to add another 1,000 MW unit to the plant.
Source: investor.bg (25.03.2014)

Bulgaria's NEK mulls setting up export JVs in Serbia, Romania - media Bulgarian state-owned electricity company NEK may set up joint ventures in Serbia and Romania to facilitate its exports. BEH has lent NEK over BGN 900 million to pay energy producers. The company's CEO Yonchev also said that NEK and Electricity System Operator (ESO) are the only companies in the BEH group that closed 2013 in the red, according to preliminary estimates. Mines Maritsa Iztok reported minimum loss for 2013, as expectations are that the profit of the company will be to the amount of BGN 4.5 million.
Source: Standart (25.03.2014)

NPP Kozloduy ready to cut the price of household electricity NPP Kozloduy is ready to sell household electricity at even cheaper prices (which is the cheapest in the country), but instead will ask the watchdog to reduce its quota for the regulated market from 55 to 40 percent of its production, said CEO Ivan Genov. Kozloduy’s losses related to the trade on the regular market, where the electricity price is determined by the State Energy and Water Regulatory Commission (SEWRC) and is less than the cost of production, are compensated from the sale of electricity on the free market. Quota for the regulated market has to be implemented, not to keep it for last and when it appears that it cannot be bought we have to unload the NPP (to reduce capacity), said Genov. He estimated the lost income for the NPP Kozloduy from reducing its capacity to BGN 8 million. The NPP generates some 60% of its revenue on the free market, where it sells 45% of its total production.
Source: Standart (25.03.2014)

CEZ Bulgaria does not proposes electricity price hike CEZ Bulgaria power distribution company does not propose an increase of the price of electricity but rather calls for more balanced allocation of the shares of the different participants in the production-supply chain, which to guarantee the interests of the end-consumers, the press office of the company announced. CEZ calls for transparent, fair and equal determination of the electricity prices. Over the past year the share of CEZ in the end-price has been constantly decreased, from 13% in 2006-2007 to 0.9% now. At the moment CEZ gets BGN 0.90 per each BGN 100 electricity bill with which the company should realise its activities. Only in 2013 the State Energy and Water Regulatory Commission (SEWRC) cut the share of the company with 90%, while at the same time the share of the National Electricity Company (NEK), the Energy System Operator and the producers was increased with 11% to 82.45% of the end-price. CEZ is left with the smallest share, while at the same time it is the most important for the quality of the electricity provided to end-consumers. Such an imbalanced structure of the electricity price contradicts the major principles in the EU, where everyone along the chain is developing in a balanced principle. With the proposal filed at the SEWRC in the end of March CEZ calls for its share to be recovered to a level that allows the company to develop the biggest electricity distribution network in the country.
Source: Standart (04.04.2014)

Double charge for transfer of electricity Electricity System Operator (ESO) has demanded double charge for transfer of electricity. This became clear at yesterday's meeting of the parliamentary energy commission, at which were heard the heads of NEK and ESO for the separation of the two companies. Currently the transmission charge is BGN 4.15 per megawatt hour, while ESO wants to return the old rate of BGN 9.70. Last year the transmission fee was reduced twice - in August and December. The purpose of SEWRC was to reduce the price and to restore the export of electricity. The price of electricity does not include only the transfer fee, said the head of ESO Shishman Chushev. Only SEWRC can say what the impact of the transfer fee to the price would be, he added. But experts say the return of the old tariff will raise the price by about BGN 0.5 per kWh with VAT.
Source: Standart (10.04.2014)

Bulgarian NPP Kozloduy shuts 1,000 MW unit for scheduled repairs Bulgaria's sole nuclear power plant (NPP) Kozloduy, on the Danube, has shut one of its 1,000 megawatt (MW) units for planned repairs, it said. Unit Five was switched off at 01.22 CET on April 20, the plant said in a statement published on its website. The repairs are scheduled to be completed by the end of May. During the downtime, the reactor will be reloaded with fresh fuel, it added. The plant’s other 1,000 MW unit, Unit Six, is operating at its full capacity. The Kozloduy NPP remained with two operational reactors of 1,000 MW each after the country closed down four units of 440 MW each to address nuclear safety concerns of the European Union prior to its accession to the bloc. Bulgaria joined the EU in 2007. In April 2012 the government decided to add another 1,000 MW unit to the plant.
Source: profit.bg (22.04.2014)

Bulgaria's Kozloduy NPP Cannot Export Electricity to Turkey - CEO Ivan Genov, CEO of Bulgaria's Kozloduy nuclear power plant, has said that it cannot export electricity to Turkey. In a Sunday interview, he explained that unit 5 of the N-plant was undergoing a planned annual overhaul and only unit 6 was operational. "We have signed contracts on the free market by end-June, the end of the regulatory period, and the quantities which remain are an obligation of the Kozloduy NPP to the public supplier, the National Electric Company (NEK). The only entity to which we can sell electricity at the moment is NEK, which are sales on the regulated market," Genov noted. "We are not entitled to sign direct contracts for electricity exports. We organize tenders through which we sell electricity to traders and the Electricity System Operator provides information about whether it is sold on the domestic market or on foreign markets. This is a requirement of the European Union – to not divide tenders into ones for the domestic market and ones for the foreign markets. We have no option of selling electricity to Turkey directly," Genov emphasized. The CEO of the Kozloduy NPP also provided information about the progress of the project for the extension of the life of units 5 and 6 of the N-plant. "Bulgaria currently has no other option of maintaining its nuclear energy than extending the life of units 5 and 6 of the Kozloduy NPP. It would be absurd to waste the opportunity of securing another 30 years of exploitation of the two N-plant units, which are selling the cheapest electricity in Bulgaria, at a low price. At the current pace of work, we should be ready to receive a license for another 10 years of exploitation of unit 5 by 2017. By 2021, this will also happen for unit 6," Genov made clear. He specified that the Kozloduy NPP had registered a profit of BGN 42 M in 2013 and Q1, 2014 had ended at a profit of BGN 64 M. He said that talks with US Westinghouse on the construction of unit 7 of the Kozloduy NPP were still underway and the contract for the first stage of the project was to be signed by September, provided that things proceeded normally and the financial terms were acceptable. Asked to comment on the heated debate surrounding the South Stream gas pipeline project, Genov was adamant that the conduit had to be built.
Source: econ.bg (28.04.2014)

CEO of Bulgarian state holding co BEH resigns The state-run Bulgarian Energy Holding (BEH) said on Thursday its executive director Ivan Yonchev resigned from the position due to poor health. After Yonchev's resignation, Bulgarian energy minister Dragomir Stoynev appointed Jacklen Cohen as a member of the board of directors of BEH, it said in a press release. BEH 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: Standart (11.07.2014)

Bulgarian state energy holding firm BEH to raise capital Bulgarian state energy holding company BEH said on Tuesday it will increase its capital. The company ended 2013 in the green and, after paying dividend, has asked the energy ministry for a nod to convert the remainder of last year's profit into capital, BEH's press office said, adding that a higher capital base would send a positive signal to investors. Earlier on Tuesday, news daily Trud reported, quoting data from the commercial register, that BEH will raise its capital by BGN 336 million. It also said BEH will pay BGN 20 million in dividend for last year. Last month, local media reported that three BEH subsidiaries were planning changes to their capital. The country’s sole nuclear power plant (NPP) Kozloduy has asked to increase its capital to BGN 165.6 million from BGN 153.8 million, while thermal power plant (TPP) Maritsa Iztok 2 plans to raise its capital to BGN 40.1 million from BGN 38.5 million. Meanwhile, gas monopoly Bulgargaz has applied to reduce its capital to BGN 206.2 million from BGN 257.7 million. BEH’s non-consolidated after-tax profit rose by nearly 39% to BGN 397 million in 2013 as revenues fell 56% to BGN 246.5 million. BEH incorporates assets that include NPP Kozloduy, Bulgargaz, gas transmission system operator Bulgartransgaz, telecommunications operator Bulgartel, the National Electricity Company, system operator Electricity System Operator, Maritsa Iztok 2 and the Mini Maritsa Iztok coal mines.
Source: Capital (10.09.2014)

TPP Varna is trying to escape closure Two months prior to close early next year, TPP Varna offered a new option for its salvation. Company director Mincho Minchev said that in vase of a gas crisis the plant can provide to part of the energy needs of Bulgaria. He saw the outcome in the signing of two new contracts. The first of these is with ESO to maintain one unit as cold reserve. Second - with NEK, which undertakes to purchase certain amounts of energy. They will assure the capacity of 120 megawatts. "In 2009, during the gas crisis, thanks to TPP Varna we experienced mild winter. But since then, after the inclusion of all wind and solar power plants there have been no activation of the cold reserve of TPP Varna, explained Minchev. In recent months, the coal plant and its owner - CEZ, try to answer the ecological requirements for large coal plants.
Source: Sega (28.10.2014)

The largest state-owned enterprise Bulgarian Energy Holding (BEH) remains in large debt, its report for the first nine months of the year shows. The company has handed out loans and has to take from related parties and Heat Supply-Sofia a total of over BGN 1.75 billion. As to the first quarter of 2014 the figures amounted to BGN 1.5 billion. Much of this amount is provided by the bond issue of BEH, which matures in 2018. The majority of the loans have been granted to the troubled subsidiary NEK. Furthermore, BEH group includes Electricity System Operator, Bulgargaz, TPP Maritza Iztok 2, Bulgartransgas, NPP" Kozloduy, Bulgartel and Mines Maritsa Iztok. Revenues of BEH (mainly from dividends) for the nine months are BGN 148.6 million less because of poor financial results of its subsidiaries. The holding has reduced the price of its services to companies in the group.
Source: Trud (03.11.2014)

Bulgarian Energy Holding Conducts Top-level Reshuffle at Several Companies The Board of Directors of the Bulgarian Energy Holding (BEH) has carried out a top-level reshuffle at a number of state-owned energy companies. Georgi Hristozov and Georgi Zlatev have been removed from the Board of Directors of the Maritza Iztok mines (Mini Maritsa Iztok EAD) and are to be replaces by Dian Chervenkondev and Nikolay Dikov, according to a media statement of BEH. Andon Andonov keeps his place on the BoD of the Maritza Iztok mines. An Executive Director of the coal mining company is to be elected at a BoD sitting. Ekaterina Istatkova has been removed from the post of Chief Executive Officer of the National Electric Company (NEK). Istatkova is to be replaced by Petar Iliev, who has been a member of the governing body of NEK. Changes have also been made to the Executive Board of the Electricity System Operator (ESO), which welcomes Ivan Yotov, Dimitar Valchanov and Milko Milkov as new members. Diyan Dimitrov has been elected member of the Board of Directors of state-owned thermal power plant Maritsa Iztok 2. He replaces Mihail Mitkov. The changes will enter into force after their inscription into the Business Register. The changes at the governing bodies of the state-owned energy companies are aimed at streamlining their management and stabilizing their financial condition, according to the media statement of BEH.
Source: Sega (27.11.2014)