site.btaBulgaria with Lowest Energy Security among 75 Largest Energy Consumers - Think Tank

Sofia, July 25 (BTA) - Bulgaria ranks last in terms of energy security among the top 75 countries with the largest energy consumption, according to the International Index of Energy Security Risk (IIESR) of the Institute for 21st Century Energy with the American Chamber of Commerce. This transpired during a roundtable Friday on Bulgaria's energy (in) security and energy policy on Friday, organized by the Center for the Study of
Democracy.

The think tank made public an IIESR report, highlighting the loss of management independence in the energy sector, facilitated by corruption practices at all levels, mismanagement of state-run companies and violation of competition rules. These factors make Bulgaria EU's most energy poor and insecure country, claims the report.

The main risks to Bulgaria are energy poverty levels, dependence on a single energy source and supply route and an energy intensive economy.

These traditional risks are heightened by mismanagement and capture of energy by private local, foreign and state interests, the report says, citing the Tsankov Kamuk hydropower project, the Belene N-plant, the South Stream gas pipeline and the Kozloduy N-plant.

According to the report, the financial state of the Bulgarian Energy Holding is worsening. Indicators show that the National Electric Company debts will put pressure on its assets or will force the state to guarantee its debts, which stood at nearly 3 billion leva by mid-2014.

The think tank urges the National Assembly to carry out a yearly review of Bulgaria's energy policy and energy security and the influence of foreign interests in the sector. The report suggests that political influence should be withdrawn from the management of state-run energy companies to ensure transparency in corporate decision-making and that the administrative capacity of the energy regulator should be boosted to make it
independent from political and economic interests.

Former socialist MP Georgi Kadiev told the roundtable that according to unofficial data some 30 per cent of fuels sold in Bulgaria are contraband and every future government should tackle this issue. The agreement with Westinghouse for seventh unit of Kozloduy is a clear example of intransparency in the sector, Kadiev said.

Former GERB energy minister Traicho Traikov said that findings in the report are backed by dramatic developments in Bulgaria and Europe in the past few months.