site.btaIdea Complemented to Have Energy Regulator Report Directly to Parliament

Sofia, August 15 (BTA) - One of the ideas that is contemplated is to have the State Energy and Water Regulatory Commission (SEWRC) function on a non-partisan basis and report directly to the National Assembly, caretaker Economy and Energy Minister Vasil Shtonov told a news conference here on Friday, presenting his team and the priorities of their term in office.

The idea can be implemented only after a regular government is formed. "We want to enhance the independence of this authority and to enable its greater expertise," the Minister said.

Asked to comment on the idea of a 20 per cent hike of electricity prices in the autumn, Shtonov said that this is impossible and excessive and stressed that the price is set by the SEWRC.

Shake-up at BEH Top

The Minister said that one of his tasks is to improve the effectiveness of State energy companies, which includes personnel changes in their management. The change in the Board of Directors of the Bulgarian Energy Holding (BEH) will shortly be entered into the register. There, BEH Director will be replaced by Deputy Minister Anton Pavlov.

"The deficit in the energy system is 3,000 million leva and is growing by between 500 and 600 million leva annually. This will be the case as long as the urgent measures we are trying to take are not taken," Shtonov said. He does not think that the balance in the system can be redressed by taking just one measure, and all stakeholders will have to make concessions. In his opinion, the Energy Strategy has to be revised to a version making it possible to reduce losses in the medium term and start repaying the debts that have built up in the system over the last four or five years.

The first steps towards the establishment of an energy board are expected over the next couple of weeks, and it will go into operation a little later.

Shtonov: "South Stream Project Should Better Be Implemented"

Replying to a question, Shtonov said that the South Stream Project should better be implemented and that it poses almost no risk to the State. "The point is whether the project meets the requirements of the European Community, we are now working to make it compatible with these requirements and to restructure it in a way maximizing the State's benefits from it," he added.

Answering another question, the Minister said that measures have been taken to safeguard the country against the risk of disrupted or impeded natural gas supplies in connection with the situation in Ukraine. "The idea is to get ready for the winter, when gas consumption increases," he added. At present the gas storage facility in Chiren is 75 per cent full, which can meet the country's entire demand for 60 to 120 days, depending on weather conditions. Funds will be allocated within days to utilize the entire capacity of the facility. Work on the gas interconnectors with Romania, Turkey and Serbia is going on.

Economy and Energy Ministry to Pursue Four Key Priorities in Energy Sector

Deputy Economy and Energy Minister Anton Pavlov, who is in charge of the energy sector, listed four key priorities of his work here on Friday. Pavlov was formally presented at a news conference by Shtonov, who described his deputy as "an expert erudite with years of experience in the sector."

As a foremost priority, Pavlov identified achieving transparency in the management of State-owned energy companies. Work will start from transparency in electricity auctions.

The second task is to ensure effective operation of the energy board, so that it can reach consensus and arrive at feasible decisions.

The third task is the accelerated completion of natural gas interconnectors with neighbouring countries, prioritizing the interconnector with Greece.

The fourth priority is to prepare the Bulgarian energy system to function in winter conditions.