site.btaUS-owned TPPs Do Not Plan on Changing Electricity Selling Price

Sofia, April 11 (BTA) - The US-owned thermoelectric power plants (TPPs) do not plan on changing the price at which they sell electricity, said here on Wednesday Ivan Tsankov, the Executive Director of AES Bulgaria, which manages the AES Galabovo TPP. He told journalists that there was a meeting earlier in the day between representatives of the US-owned TPPs and Ombudsman Maya Manolova, during which the former had explained the investments made and the standing of the agreements.

A couple of weeks ago, the heads of the four nationally representative employer organizations: Bozhidar Danev of the Bulgarian Industrial Association, Velev, Kiril Domuschiev of the Confederation of Employers and Industrialists in Bulgaria and Tsvetan Simeonov of the Bulgarian Chamber of Commerce and Industry, filed a complaint to Manolova in their capacity as natural citizens against the two US-owned TPPs. In their complaint, they insisted on an immediate investigation and taking of measures against an infringement of consumer rights by those power plants.

At another meeting of the four employers' organizations with Prime Minister Boyko Borissov this February, it was decided that the Government will ask the European Commission to speed up work on the termination of the two 15-year agreements under which the electricity generated by AES Galabovo and ContourGlobal Maritsa East 3 TPPs is purchased at preferential prices.

According to Tsankov, the TPPs' investment has been partially paid off since 2011, but there are still 8 years left until 2026, during which the investment has to be paid off completely.

He explained that the two TPPs' agreements can be changed in order for them to move to a completely liberalized market, but given that the investors' interests are fully protected. This means that this balance between risk and reward must be retained, Tsankov explained. He noted that the two TPPs are ready to sell electricity on the free market, but only given the presence of a mechanism that would compensate them, i.e. retaining the agreements' current economic parameters.

Tsankov said that changing or terminating the agreements in return for compensation is only one of the available options. Another option is to keep them unchanged. According to AES Bulgaria, there are no elements of State assistance and the contracts are necessary and critical for the infrastructure in Bulgaria.

Energy Minister Temenouzhka Petkova said that Bulgaria has made commitments related to the complete liberalization of the energy market. She recalled that back in 2013, the then State Energy and Water Regulatory Commission had alerted the European Commission about unregulated State assistance regarding the two long-term agreements with the two US-owned TPPs. This procedure is still pending, which is why talks have been initiated with the two TPPs. Petkova expressed belief that the best solution for both sides can be reached via constructive negotiations with representatives of the two TPPs.