Power Distributor EVN 'Will Not Pay' Debt to Bulgaria's NEK

Business | March 28, 2014, Friday // 12:16|  views

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Power distributor EVN declared it will not make any payments to Bulgaria's National Electricity Company (NEK) on Friday.

In a press release to the media, EVN has stated that the sum of BGN 216.6 M it allegedly owes to NEK and which Bulgaria's energy watchdog DKEVR insists should be transferred by Friday is in fact what NEK has to pay to EVN, as the latter has not collected its revenues from green energy between July 1, 2012 and July 31, 2013.

The Austrian-based power distributor claims that NEK owes it a compensation for that period, in which it had the legal obligation to buy energy from renewable sources, but was never reimbursed by the state electricity company.

NEK's liabilities to EVN (reportedly BGN 144 M), on which the former has not directly delivered, are to be "kept back" by the power distributor from what it allegedly owes to NEK so that it can balance on its budget, the company has explained.

EVN Bulgaria will therefore not make any payments to NEK, as all of its actions are in compliance with the law.

Officials representing the power distributor have called for a "constructive dialogue" with governmental institutions to find a way out of the crisis, website Investor.bg has reported.

Friday, March 28 is the deadline for two of Bulgaria's power distributors to deliver on their payments to NEK which, according to the state company and energy watchdog DKEVR, currently amount to BGN 347 M.

The third one, Czech distributor CEZ, had to do this by Thursday, but no payments were reported.

EVN has announced it will sue Bulgaria for BGN 1 M over threats to suspend licenses and lack of payments from NEK.

Out of this sum, CEZ "owes" BGN 67.6 M to NEK and Austrian Energo-Pro - BGN 63.7 M.

DKEVR has threatened to suspend the power distributors' licenses to operate in Bulgaria if they do not transfer what is owed to NEK within the above-stated period.

Bulgaria's Economy Minister Dragomir Stoynev has denied any speculations that the government might move toward nationalization of power distributors, but reports in Austrian newspaper Kurier have repeatedly hinted at distributors' officials fearing this might happen.

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Tags: DKEVR, NEK, EVN, power distributors, green, Dragomir Stoynev


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