Authorities Aspire to Eliminate National Electricity Company's Current Deficit

Sofia, April 14 (BTA) - The authorities are taking a series of
steps to eliminate, or nearly eliminate, the current deficit of
the National Electricity Company (NEK), which was 644 million
leva last year, Energy and Water Regulatory Commission (EWRC)
Chairman Ivan Ivanov told journalists on Tuesday.

One of the steps was an April 8 revision of NEK's agreements
with two US-owned thermal power plants in Bulgaria, Maritza East
1 and Maritsa East 3, which reduced the capacity disposition
price paid by NEK to the two plants. The reduction will save NEK
nearly 100 million leva every year or 964 million leva over the
remaining ten years of the agreements' term of validity.
Discussing the revised agreements, Ivanov said: "There has been
much speculation. I am surprised that even when something good
is happening, some people try to mislead the public."

Another way of cutting NEK's deficit is to enhance control over
compliance with the electricity sale quotas set for in-house
power plants and green power plants, Ivanov said. Besides that,
Bulgarian consumers also contributed to the reduction of NEK's
deficit by 150 million leva after electricity prices rose in
October 2014, he noted.

As NEK's deficit falls, it will be possible to take two more
steps: to change the electricity trading rules which were
established in the summer of 2014, and to make the final choice
of a model for a future electricity exchange and introduce
legislative changes necessary for its establishment, Ivanov
said. The electricity exchange should become a fact at the end
of this year or early next year. After it is established, EWRC
will be relieved of the duty to set electricity prices and will
only have to set the charges for grid access and electricity
transmission and the "public obligation" supplement relevant to
the purchase of green electricity, he said.

Ivanov declined to comment on the electricity price proposals
made by electricity distributors because, he said, they are yet
to be considered by EWRC.