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The absurdities in the Bulgarian energy industry continue. With a decision approved on Friday, the resigned government of Nikolay Denkov has amended one of the series of decisions in the sector, obliging "Bulgarian Energy Holding" to donate BGN 728 million to the Power System Security Fund. The strange donation was reached after the National Assembly obliged the Ministry of Finance to urgently provide BGN 1 billion to cover a deficit in the fund, which must cover the costs of liberalization of the electricity market for households. Now, however, it turned out that a local tax amounting to BGN 36.4 million must be paid on the donation. Usually the tax is paid by the recipient, but in this case the cabinet decided to oblige the donor BEH to pay it. By law, the state and municipalities are exempt from local tax on donations, but in this case the grant funding is from a commercial company to a fund. The donation itself should be made within 7 days from the day on which the Ministry of Energy will acquire the debts of "Heating-Sofia" to BEH and "Bulgargaz" for a total value of BGN 1.6 billion. There is currently no data on this operation to be finalized. No similar draft documents for entry have been submitted for the lot of the municipal company. There is no decision of the metropolitan municipal council on the subject, and the company is municipal. The scheme proposed by the "Denkov" cabinet for the transfer of loans and debts in the energy sector is very problematic, especially in terms of state aid. It is not clear whether, against the background of these questions, the caretaker government will not cancel the decree on granting 1.6 billion BGN extraordinary funds from the budget of the Ministry of Energy until receiving an opinion from the EC. The amount was ordered by the Ministry of Finance at the beginning of April, and the huge payment is one of the reasons why the parliament decided to limit payments outside of pensions, salaries and overheads. If the MC revokes the decree, another solution will have to be sought to secure funds for the Power System Security fund.

 

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