site.btaJust One Fifth of NEK's Lv 1,000 Mln Shortfall Offset by October Electricity Price Rise - Minister

Just One Fifth of NEK's Lv 1,000 Mln Shortfall Offset by October Electricity Price Rise - Minister

Sofia, September 23 (BTA) - Economy and Energy Minister Vassil
Shtonov told journalists on Tuesday that the electricity price
rise from October 1 would offset just about 200 million leva out
of a 1,000-million-lev shortfall in the National Electricity
Company (NEK).

Other steps to deal with the deficit include re-negotiating the
terms of long-term electricity purchases from the US-owned AES
Maritza East 1 and ContourGlobal Maritsa East 3 thermal power
plants, as well as the terms agreed with green energy producers.
Shtonov also said that the State Energy and Water Regulatory
Commission in its previous composition did something on paper
only, while the contracts should be reviewed and amended with
legal effect.

Commenting on the recent replacement of the executive director
of the Kozloduy Nuclear Power Plant, Shtonov said that if NEK's
losses were to be cut, all companies in the energy sector should
work more effectively. "We have no plans for replacing one
director or another, what matters is how companies are managed,"
the Energy Minister said. "Ivan Genov did a good job but we
need someone new for the next stage of the plant's development."

As to the key tasks facing the Kozloduy N-plant, Shtonov singled
out better efficiency, better managed trading in electricity,
and modernization of the 1,000-megawatt Units 5 and 6.

Asked why no changes were being made in NEK, Shtonov said it is
actually a large paying box which buys electricity at a certain
price and sells it for about 1,000 million leva less a year. He
added that companies in the energy sector should optimize their
performance if NEK's deficit is to stop growing.