Bulgaria Mulls Splitting Power Co, System Operator

Bulgaria's Electricity System Operator (ESO) is set to take over the grid, currently run by the National Electric Company (NEK), as well as its asset-backed debt to banks.

A new model for the redistribution of the companies is being discussed with NEK's creditors, revealed Deputy Minister of Economy and Energy, Ivan Ayolov, reports mediapool.bg.

The splitting of NEK and ESO is a requirement under the Third Energy Liberalization Package of the European Commission. Bulgaria decided that ESO, which is a subsidiary of NEK should be transferred to the Bulgarian Energy Holding (BEH), which owns NEK.

It has become clear, however, that some of the creditors of NEK disapprove the transfer of assets to ESO due to the lack of an acceptable financial model and risks associated with the repayment of loans.

Ayolov clarified that the new model is ready and has been consulted with the European Bank for Reconstruction and Development, the European Investment Bank, and Credit Swiss Bank, which is among the nine creditors of NEK.

Due to the delay of adopting the Third Energy Liberalization Package, Bulgaria is threatened with EUR 8448 daily fines if the EC Court in Luxembourg decides against the country.

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