Current Deficit at Bulgaria’s National Electric Company at BGN 600 M

Business » ENERGY | March 9, 2015, Monday // 08:14| Views: | Comments: 0
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Bulgaria: Current Deficit at Bulgaria’s National Electric Company at BGN 600 M Bulgaria's Energy Minister Temenuzhka Petkova, photo by BGNES

The deficit at Bulgaria’s National Electric Company (NEK) stands at BGN 3.3 B, while the current deficit for 2014 amounts to BGN 600 M, according to Energy Minister Temenuzhka Petkova.

Petkova visited Sunday the Maritsa Iztok Mines (Mini Maritsa Iztok EAD), Bulgaria's largest coal mining company.

She said that NEK had made a commitment to pay to the two US-owned thermal power plants (TPPs) in the complex, AES Galabovo ContourGlobal Maritsa East 3, a total of BGN 700 M in arrears.

Petkova, as cited by the Bulgarian National Radio, informed that the two TPPs owed the coal mining company BGN 170 M.

Bulgaria’s Energy Minister suggested that the deficit at NEK created problems related to liquidity, while the internal indebtedness in the sector did not allow it to function properly.

She reminded that the Bulgarian government had to renegotiate the terms under the contracts with the two US-owned TPPs by end-March.

“I hope we manage to do that. As you know, the talks are very tough as both sides are determined to protect their interests. We need to eliminate the deficit at NEK generated as a result of the implementation of these contracts, while our US partners want to protect their investment,” Petkova declared.

She pointed out that the new amendments to the Energy Act would exclude from the energy mix TPPs that were not highly efficient, thereby shrinking NEK’s deficit by BGN 100-150 M.

Petkova visited the Maritsa Iztok Mines to check the situation at the coal mining company after part of its railway infrastructure connecting it to the Maritsa Iztok 2 TPP was flooded after heavy rains.

She assured that the situation at the coal mining form was under control, yet very complicated.

Petkova informed that there was no risk for Bulgaria’s energy system, adding that she had arranged with Transport Minister Ivaylo Moskovski for the provision of an alternative railway section so that coal deliveries to the Maritsa Iztok 2 TPP could continue while the damage caused by the heavy rain was being taken care of.

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Tags: thermal power plants, Maritsa East Mines, NEK, National Electric Company, Temenuzhka Petkova, Energy minister, heavy rain, flooding, coal supply
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