site.btaNew Economy and Energy Minister Plans to Set Up Energy Board

Sofia, August 6 (BTA) - The new Caretaker Minister of Economy and Energy, Vassil Shtonov, announced on Wednesday that he will set up an Energy Board comprising energy market stakeholders, the State Energy and Water Regulatory Commission and experts from the European Commission, the World Bank and the European Bank for Reconstruction and Development.

The Energy Board will ensure that important energy matters are put to public discussion and are handled transparently, said Shtonov, taking over his ministerial post from his predecessor Dragomir Stoynev.

Hearing of Shtonov's plans, Stoynev said: "I want to warn you that you should be cautious about external consultants."

Stoynev said he was handing over two things to his successor: Bulgaria's energy strategy and the national energy balance of the first seven months of this year. "I sincerely wished that the political forces sat down and discussed the energy strategy before it would be approved by Parliament, but after the European Parliament elections we got into a political crisis and no one would listen to anyone else," Stoynev said.

The outgoing Minister recalled that by the time he took office 14 months ago, his predecessor had asked the European Commission for help to deal with the situation in the energy sector. Now, 80 per cent of the Commission's recommendations have been implemented. "This year we also expect to acquire an Energy Exchange; the National Electricity Company has been separated from the Electricity System Operator; and a balancing market for electricity has been in place since June 1," Stoynev said, reviewing the accomplishments of his Ministry.

He noted that the renewable energy industry poses the greatest challenge. According to Stoynev, even the European Commission has revised its strategy and reconsidered its support for renewable energy. Sadly, the Constitutional Court in Bulgaria abolished the charge to renewable energy producers and this will affect end-users, the outgoing Minister said.

He reported that this year has seen a 14.5 per cent rise in electricity production in Bulgaria and a 2.5 per cent rise in electricity consumption. Electricity exports have increased by 137 per cent, he said, adding that the output of the Maritza East energy complex has gone up by 32 per cent.

"The projects in the energy sector are neither Russian nor American, they are Bulgarian and we should view them from the perspective of the national interests," Stoynev argued.

He said he has suspended a measure under Operational Programme Competitiveness and has alerted the prosecution magistracy, the State Agency for National Security and the European Commission about irregularities. This was necessary in order to protect the whole programme, Stoynev said. His successor Shtonov added that it is extremely important to correct the irregularities about Operational Programme Competitiveness.

Shtonov also said: "Large energy projects may have their role to play, but we also need to get the economy going, so that we will no longer be the poorest EU nation."