site.btaEmployers Argue that American-Owned TPPs "Rob" Bulgarian Households of Lv 486.4 Mln Annually

Sofia, April 2 (BTA) - Annually, the two American-owned thermoelectric power plants: AES Galabovo and ContourGlobal Maritsa East 3, appropriate 486,400,000 leva from Bulgarian households by non-market means over a one-year regulatory period, Bulgarian Industrial Capital Association (BICA) Board Chairman Vassil Velev said here on Monday, emerging from a meeting with National Ombudsman Maya Manolova. Last week 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.

Velev specified on Monday that the National Electricity Company (NEK) has undertaken to pay ContourGlobal 106.70 leva/MWh and AES Galabovo 168.66 leva/MWh, which is more than double the market price that varied between 66 and 36 leva/MWh last week. The BICA Board Chairman noted that on Monday electricity cost some 45 leva/MWh on the Independent Bulgarian Energy Exchange. The Energy and Water Regulatory Commission (EWRC) has set a reference price of 70 leva/MWh. Velev estimates that each Bulgarian household pays the two US-owned power plants 161 leva without valuable consideration. "The exact word for this is robbery," he stressed.

Manolova argued that legislation should be amended to regulate the extent of the preferential treatment enjoyed by the American-owned TPPs, the plants generating electricity from renewable energy sources, high-efficiency cogeneration of heat and power and some heating utilities. In her opinion, there is no transparency now what exactly is going on and what action the Bulgarian institutions in charge have taken.

The National Ombudsman said that after the management of the US-owned TPPs found out that she would meet the employers' organizations, they themselves requested a meeting which will take place this or next week.

Manolova will approach the ministries of energy and finance and the EWRC for full information on what they are doing about the issue, what the possible options are, and what end price the Bulgarian citizens will pay if the contracts are terminated.

At a meeting of the four employers' organizations with Prime Minister Boyko Borissov on February 6, 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.

In a recent interview on Bulgarian National Television, US Ambassador in Sofia Eric Rubin admitted that he was aware that discussions on the American-owned power plants were in progress but insisted that "this is not something in which our government will play a role" and that "this concerns EU legislation". Asked whether he expects the contracts between the Bulgarian Government and the American-owned power plants to be reviewed, Rubin said that this is not a subject that he would discuss in his capacity as US Ambassador. "Naturally, we strongly support U.S. investments in Bulgaria and the American companies working here, but it is none of our business to get involved in the details," he noted.

Asked whether the American-owned plants would be exposed to risk if the preferential prices of the electricity they produce are cancelled, the Ambassador answered that "electricity pricing is undoubtedly a complicated issue. Again, this is a matter of EU legislation, but the thing that is important to stress is energy diversification." He cited Maritsa East 1 and Maritsa East 3 as "an example of true success stories of American investment in Bulgaria".