site.btaGERB-UDF, MRF Propose That Finance Minister Take Necessary Actions to Cover Energy Deficit

GERB-UDF and the Movement for Rights and Freedoms (MRF) proposed, in a draft decision submitted to the National Assembly, that the Minister of Finance take the necessary actions to cover the operational deficit of the Electricity System Security Fund (ESSF), indicates a report on the institution's website on Wednesday.

The draft decision was tabled by GERB-UDF Floor Leader Boyko Borissov, MRF Floor Leader Delyan Peevski and MPs from the relevant parliamentary groups.

The reasons for the draft decision refer to a ESSF letter dated February 28, 2024 which informed Finance Minister Assen Vassilev of liquidity problems and the impossibility of fulfilling duties in accordance to the Energy Act, which would lead to difficulties in payments between the participants in the energy sector and is a prerequisite for chain insolvency of energy companies.

"In the last three years, the Minister of Finance has "bleed out" the state energy industry,  Bulgarian Energy Holding EAD (BEH) and the ESSF, draining over BGN 3.5 billion from BEH and BGN 847 million from ESSF through the SAFE mechanism [Simple Agreement for Future Equity]. The funds were used to cover holes in the state budget, as a result of the wrong policies of the Minister of Finance in under Continue the Change and Continue the Change-Democratic Bulgaria", the document states.

The draft decision suggests that the Minister of Finance take actions to ensure financial stability to overcome the created deficit.

With the draft decision, the National Assembly instructs the Minister of Finance to take the necessary actions to cover the operational deficit of the ESSF by March 31, 2024.

On his Facebook page, parliamentary Energy Committee Chair Delyan Dobrev wrote that "in the last 3 years of "change" from the energy sector, nearly 4 billion BGN were drained from the budget". "We submitted a proposal for Assen Vassilev to return BGN 1 billion to the energy sector so that the price of electricity does not rise by 20%," he pointed out.