Bulgaria's NEK at Record Loss in 2013

State-owned National Electricity Company (NEK) registered a record loss of BGN 338 M (EUR 169 M) last year, sources in the Ministry of Economy and Energy say.

The latest reports by the Bulgarian daily Trud, which cites the sources, comes after reiterated comments by Economy Minister Dragomir Stoynev that a loss of BGN 500  M (EUR 250 M) was expected at NEK for 2013.

NEK is yet to publish its report for 2013 and Q1 of 2014, claiming it has until end-July for that purpose.

It bases its stance on the Accountancy Act, but other legislation, such as a decree by the Council of Ministers, says that state-owned companies are to hand their reports before April 25.

Over the past few months rumors have circulated that NEK is in a state of technical default and that precisely is financial problems triggered a dispute with electricity distribution companies (EDCs) over hundreds of millions of BGN it is allegedly to receive from them.

The EDCs, the heating utilities and thermal power stations are among those who claim millions from NEK, the debts of which were estimated at BGN 628 M (EUR 314 M) as of April this year.

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