site.btaEnergy Minister: Bulgartransgaz and ESO Withdrawal from BEH Puts Holding's Financial Stability at Risk

The withdrawal of Bulgartransgaz EAD and Electricity System Operator (ESO) from the structure of Bulgarian Energy Holding (BEH) will not have a negative financial impact on the two state-owned companies, but the risk for BEH's financial stability is significant, caretaker Energy Minister Vladimir Malinov said in Parliament during a hearing in plenary on Wednesday. The hearing focused on the proposals for amending the National Recovery and Resilience Plan, as well as the proposals on the REPowerEU chapter and the progress of the discussions in the European Commission (EC) on these proposals.

The Minister noted that BEH's bond loans are facing the biggest risk. The withdrawal of Bulgartransgaz and ESO as key companies guaranteeing the raised funds with their assets means renegotiation of the issued debt terms, Malinov added.   

The structural reform in BEH is important for the EC which insist Bulgaria to implement it. The proposed alternative measure with an equivalent effect by the Bulgarian Government, namely a legislative ban on cross-subsidization within BEH, is not accepted as such by the Commission, Malinov said.