Energy companies to be united in a new structure headed by NEK

State-owned energy companies will be united into a new holding company after the dissolution of the Bulgarian Energy Holding (BEH), Deputy Energy Minister, Maya Hristova, said yesterday. She attended the Sixth International Congress for Southeast Europe, called “Renewable Energy Sources and Energy Efficiency”. According to Hristova, the National Electricity Company (NEK) will be the leading company in the new structure, which will also incorporate the Kozloduy nuclear power plant (NPP), the Maritsa Iztok 2 thermoelectric power plant (TPP) and Maritsa Iztok Mines. The aim is to rehabilitate the enterprises. BEH is expected to be dissolved by the beginning of the summer and the new company will be set up meanwhile.

In addition to the energy companies, until now BEH incorporated the firms from the structure of the former Bulgargaz Holding, namely, Bulgargaz, Bulgartransgaz and Bulgartel. These will probably be united in a separate gas company. BEH was also responsible for the development of big infrastructure projects, such as the Belene NPP, the South Stream and Nabucco gas pipelines. In the future, the new energy company will be responsible for the construction of nuclear power stations and Bulgargaz - for gas projects.

According to Maya Hristova, the idea of unifying electricity companies is aimed at ensuring the stability of the companies’ assets and at NEK becoming the leading provider of electricity. Currently, the company faces serious problems with paying the money needed for completing the construction of the Tsankov Kamak hydroelectric power plant (HPP). “NEK has not exceeded its projected expenses. Rather, it has not assessed its investments properly,” the Deputy Economy Minister added. The main reason for NEK’s liabilities is not that it purchased expensive electricity from the TPPs but the way the price for consumers is formed. Some of the components, acknowledged in EDCs prices, have not been included in NEK’s price framework, added Hristova.

After the dissolution of BEH, the BGN 214 mln debt of the Sofia Central Heating Utility can be decapitalised or rescheduled, stated Maya Hristova. Another option is to transfer the debt to the Sofia Municipality, together with ownership of the company.