site.bta BEH Loan Problems Will Not Affect Electricity Price, Regulator Says

BEH Loan Problems Will Not Affect Electricity Price, Regulator Says

Sofia, November 4 (BTA) - Energy and Water Regulatory Commission (EWRC) Chairman Ivan Ivanov said on Wednesday that, for the time being, there is no reason to expect an electricity price hike due to the problems with the future loans to be taken out by the Bulgarian Energy Holding (BEH). Ivanov said the government's refusal to provide a guarantee for the BEH loans should not push up the electricity price for now, "but we will watch the situation."

The loans are partly intended to finance a debt settlement between the National Electricity Company (NEK) and the Maritsa East 1 and 3 thermal power plants as a condition for revising the plants' long-term electricity sale agreements with NEK, which will help NEK reduce its financial deficit.

In his remarks to journalists after an open EWRC meeting, Ivanov also said the European Commission is still expected to determine whether the two Maritsa East plants have been receiving unlawful state aid.

Discussing another question, he said the regulator is considering whether to let the future Bulgarian independent electricity exchange adopt Central European Time for its own purposes. On November 11, EWRC will respond to the proposals made during a public discussion on the electricity exchange.

The Bulgarian independent electricity exchange is to go into operation at the beginning of 2016 after a trial period in December 2015. The World Bank is expected in the middle of November to deliver an interim report suggesting the most appropriate model for the functioning of the exchange.