Bulgaria Socialist Fear Investor Exodus if Power Utilities Are Nationalized

The angry faces of BSP's Kutev (left) and Kuyumdzhiev (right) speak about their criticism of PM Borisov for suggesting that the power utilities might be re-nationalized. Photo by BGNES

The potential renouncing of the privatization of Bulgaria’s power utilities is going to shatter foreign investors’ trust, according to the opposition Socialist Party (BSP).

The warning was issued Thursday by Anton Kutev, Secretary of the BSP, who commented on the recent suggestions by Prime Minister Boyko Borisov that the state might reconsider the privatization of the electricity distribution companies currently owned by the Czech CEZ, the German EON, and the Austrian OVN, over unfavorable electricity pricing schemes.

“Nobody among the international investors is going to take Bulgaria seriously if the deals are made void, this is a lack of responsibility, and an inconsistent policy,” the former Deputy Economy Minister Yavor Kuyumdzhiev, who is also the head of the Socialists’ Economic Council, declared.

He went as far as suggesting the re-nationalization of the power utilities would be more brutal than the nationalization carried out after the 1944 coup by the Bulgarian Communist Party (which is actually the predecessor of the Bulgarian Socialist Party).

Kuyumdzhiev even asked the Borisov government if in such case the state would return to CEZ, EVN, and EON the money they have invested in Bulgaria, and where exactly it is going to come from.

The ex Deputy Economy Minister did say that the privatization of the power utilities was a “blunder” but also stressed that is a fait accompli.

With respect to the major criticism that PM Borisov raised against the power utilities – the fact that they buy electricity from state plants much cheaper than they sell it to the consumers – Kuyumdzhiev said that the electricity prices are decided upon by an independent institution (i.e. the State Commission for Energy and Water Regulation, or DKEVR), and that they also had to account for investment spending.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!