Bulgarian Parliament Committee Moves to Address Deficits at Power Company NEK

Business » ENERGY | July 20, 2015, Monday // 18:16
Bulgaria: Bulgarian Parliament Committee Moves to Address Deficits at Power Company NEK File photo EPA/BGNES

A Bulgarian Parliament commitee has adopted changes to the Energy Act meant to reduce chronic financial deficits at the state-owned National Electricity Company NEK.  

The changes approved on second and final reading by the Energy Committee on Monday call for the creation of a Electricity System Security Fund, according to BGNES.

Producers and importers of electricity will make monthly contributions into the new fund equal to 5% of their sales revenue.

Another change provides for cutting the expenses of NEK by capping the purchases of electricity from renewable sources at preferential prices at volumes agreed in advance between NEK and the renewable operators.

The change will be made by replacing the term "average duration of operation" in contracts by "net specific production of electricity", which will allow NEK to cut its costs and will make it impossible for producers to increase their rate of return above a level agreed in advance.

The Parliament is expected to vote on the changes to the Energy Act on Wednesday. If approved, they could take effect from next month.

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Tags: Bulgaria, parliament, energy act, Energy Commitee, NEK, National Electricity Company

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