site.bta Bulgaria Will Not Participate in CEZ Asset Purchase Procedure - Minister

Bulgaria Will Not Participate in CEZ Asset Purchase Procedure - Minister

Sofia, May 15 (BTA) - There is no way in which Bulgaria can participate in a procedure for buying CEZ electricity distribution assets at this stage, Energy Minister Temenuzhka Petkova said Monday. Petkova was participating in a conference titled "Bulgaria and Azerbaijan: 25 Years of Diplomatic Relations".

Taking a question about a statement of the President of the Confederation of Independent Trade Unions in Bulgaria (CITUB), Plamen Dimitrov, that the state should regain its control over CEZ, but that he does not expect the incumbent Borissov cabinet to do so, as well as whether Bulgaria is interested in and has the capacity to buy out the utility's assets, Petkova said that several important points should be known when the sale of CEZ is discussed. CEZ is a private company whose sole owner is the Czech state. The transaction was concluded pursuant to a privatization contract. That the Czech state has decided to sell its CEZ share in Bulgaria is a decision of the owner alone. The procedure is being conducted according to Czech legislation and at this stage Bulgaria cannot participate in any way, Petkova explained.

When someone speaks of Bulgaria buying back the CEZ assets it should be clear that this calls for considerable resources, not only for the purchase itself, but also for investments and network maintenance. Nor should another important thing be forgotten and it is related to the pending complete liberalization of the energy market, Petkova pointed out. She also recalled that the three electricity distribution companies in Bulgaria will not have a monopoly on the energy market and will have to compete will all other power suppliers. They will continue to collect their transmission and access fees because the network is theirs, but everything else in respect to the electricity trade will follow market principles. These are issues that have to be discussed in depth when such decisions have to be made. Such a transaction will cost hundreds of millions, Petkova added.

CEZ acquired a 67 percent stake in the power distributor in western Bulgaria in 2004 after placing the highest bid of 281.5 million euro in a privatization tender.