Bulgaria’s Electricity Company, US-Owned TPPs to Approve Changes to Long-Term Contracts

Bulgaria’s National Electricity Company (NEK) and the two US-owned thermal power plants AES Maritza East 1 and ContourGlobal Maritsa East 3 TPP are to sign agreements Wednesday on amending the existing long-term contracts.

In end-February, state-owned NEK and the two TPPs signed a memorandum allowing for a decrease in electricity prices by the TPPs in exchange for the settlement of the debts of NEK amounting to around BGN 800 M, according to reports of the Bulgarian National Radio.

Bulgaria’s government intends to use the renegotiation of these agreements as the main instrument for the financial stabilization of NEK.

As regards the impact of the renegotiation of the agreements on end-consumers, price levels are expected to remain unchanged.

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