site.btaLarge Investors in Energy Sector Lash Out Against Reform Package Proposed by Four Employers' Organizations

Large Investors in Energy Sector Lash Out  Against Reform Package Proposed by Four Employers' Organizations

Sofia, October 12 (BTA) - Some of the largest companies in the
energy sector in Bulgaria lashed out against a package of
reforms which four employer organizations unveiled last week,
including nationalization of assets in the power industry.
"Organizations which claim to represent all business in Bulgaria
 are taking action which have not been coordinated with the
sectoral representatives and which go against the logic of free
market and the principle of inviolability of private property,"
says a declaration sent out to the news media on Monday.

The declaration is signed by the Association of Heating
Utilities, the Hydroenergy Association, the Bulgarian Wind
Energy Association, the Bulgarian Photovoltaic Association, EVN
Bulgaria, AES Bulgaria, ContourGlobal Maritsa East 3 and CEZ
Bulgaria.

It comes a week after the Confederation of Employers and
Industrialists in Bulgaria, the Bulgarian Chamber of Commerce
and Industry, the Bulgarian Industrial Association and the
Association of Industrial Capital in Bulgaria put forward what
they called measures for reforms in the energy sector. The said
measures include purchase of the bank credits of green energy
plants and their subsequent restructuring through the Bulgarian
Development Bank to enable subsequent contracting of lower
purchase prices for their electricity. The plan also proposes
that the State buy out the shares of two US-owned power plants,
 AES Maritza East 1 and ContourGlobal Maritsa East 3, and then
offer them to a different investor.

The problem with these two power plants is that the State has
long-term agreements for purchase of electricity at preferential
 prices. The government is now trying to lower these in exchange
 of paying up all outstanding debts of the National Electricity
Company to the two power producers. 

According to the signatories to the Monday declaration, the
proposed measures go against the national and international law
and against the ongoing efforts of the government for
stabilizing the energy sector.

Furthermore, they threaten to undermine Bulgaria's reputation as
 a country with a stable investment climate, the declaration
says.

"This is why we vow our support for any policy based on clear
principles, European practices, respect for private property,
the law and transparency," the signatories say. They call on the
 government to distance itself from "such uncoordinated actions"
 and press ahead with the reforms in the sector aimed at energy
security, diversification and independence.