KEYWORDS TODAY:   RESIGNATIONBSPMalaysia Airlines Crash in Eastern UkraineKTB

HOT: » Bulgaria's government has stepped down

Energy Ministry Blames GERB Govt for Debts of Bulgarian Power Co

Business » ENERGY | April 14, 2014, Monday // 18:13| Views: 4146 | Comments: 0
  • Send to Kindle
Bulgaria: Energy Ministry Blames GERB Govt for Debts of Bulgarian Power Co Photo by EPA/BGNES

Deputy Economy and Energy Minister Ivan Ayolov has suggested that center-right party GERB should be held accountable for the record-high debts of the National Electric Company,NEK.

Ayolov's statement came in response to Monday's visit of Delyan Dobrev, Economy and Energy Minister during the term in office of the previous GERB government, to the headquarters of the Ministry of Economy and Energy in Sofia to request official information about the debts of NEK.

Responding to the request of GERB (Citizens for European Development of Bulgaria), the Ministry of Economy and Energy came up with a media statement informing that the debts of NEK increased by BGN 605 M in the period 2009 – June 2013, without taking into account an additional sum of around BGN 400 M owed to BNP Paribas under a loan with a maturity date in end-May 2013.

According to the media statement, the debts of NEK amounted to BGN 2.238 B by December 31, 2011, growing by 12.3% to BGN 2.552 B by December 31, 2012.

The debts of NEK stood at BGN 1.897 B by June 30, 2013, accounting for 75% of the total annual debts of NEK by December 31, 2012, signaling a lack of financial resources to cover the contracts signed by NEK with a range of counterparties.

According to Bulgaria's Ministry of Economy and Energy, NEK lacked a mechanism for determining the order of priority and the amount of payments under obligations arising from the different contracts.

According to the media statement, the debts of NEK registered an approximately 4-fold decrease compared to the level in June 2013. NEK is said to be experiencing difficulties mainly due to the lack of payments from power distributors, with their obligations amounting to nearly BGN 350 M by April 2014, according to the Ministry of Economy and Energy.

Energy » Be a reporter: Write and send your article
Tags: National Electric Company, NEK, GERB government, Citizens for European Development of Bulgaria, power distributor, Delyan Dobrev
Expats.bg All Are Welcome! Join Now!

Leave a comment


Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria