site.bta Maritza East 1 Electricity Price Cut Approved by Creditors

Maritza East 1 Electricity Price Cut Approved by Creditors

Sofia, July 13 (BTA) - An arrangement between the National
Electricity Company (NEK) and the AES Maritza East 1 Thermal
Power Plant to modify the agreement under which the plant sells
its electricity was approved by the energy regulator and by all
24 European and Bulgarian banks which are creditors to AES
Maritza East 1, as well as by the European Bank for
Reconstruction and Development, the World Bank and the export
credit agencies of France and Germany, the plant said in a press
 release on Monday.

The arrangement, concluded on April 8, entails an immediate
reduction of NEK's expenses, the plant's CEO Olivier Marquette
said. The change consists in reducing the availability price
charged by Maritza East 1 by 14 per cent as soon as the plant
collects all its overdue receivables. This will save NEK around
50 million leva annually, or 550 million leva until the sale
agreement expires in 2026, the press release said.

Marquette was quoted as saying that the reduction of the price
charged by the plant, along with a legislative package aimed at
stabilizing NEK financially, are the right steps forward in
addressing the difficulties in the Bulgarian electricity sector.
 According to him, the electricity sale agreement is not an
obstacle to liberalizing the national electricity market,
because European practice shows that such a formula is
successful on many markets. Marquette said Maritza East 1 is
part of the solution to the problems of the electricity sector
and will continue to support the government's desire for deep
and massive reforms.