Bulgaria: TPP Maritza East 2 wants guaranteed sales of electricity to NEK

Published on 25. May 2015., SEE Energy News

Thermal Power Plant Maritza East 2 requires guaranteed sales of its energy, and mid-year the plant could be on a regulated market. Namely, the state power plant Maritza East 2 has asked the energy regulator to allow her to enter into agreements with Bulgaria’s National Electric Company (NEK) for the compulsory purchase of part of the energy it produces.

According to the company, such behavior is one of the possible measures which could reduce its losses for 2014 and for the first quarter of this year. This is the only way to solve the problem in the next few months.

These measures are presented in the latest financial accounts of the company for 2014 and the first quarter of this year.

If you do not take immediate measures in this direction, the company will have negative financial results in the following quarters in 2015. This will lead to the situation where TPP Maritza East 2 won’t be able to service its obligations to suppliers and financial institutions, including state suppliers and financial institutions.

The reason why the state power plant is worried is connected to the liberalization of the energy market, which should happen by the end of this year. The problem is that some of the largest electricity producers, such as TPP Maritza East and the nuclear power plant Kozloduy, may lose part of their guaranteed revenues coming from the sales to domestic consumers. Because of this, most endangered is the state thermal power plant, which by mid-year can fully found itself on a regulated market, where prices are determined administratively.