7 Ambassadors to Bulgaria Express Concern over Energy Sector Measures

Seven ambassadors have expressed concern in a letter to the Bulgarian Parliament Speaker over restrictions proposed by the State Commission for Energy and Water Regulation (DKEVR).

The letter, signed by the ambassadors of Austria, UK, the Republic of Korea, US, France, the Czech Republic, and Japan, was submitted to Parliament on June 30, according to reports of Sega daily.

The envoys draw attention to the requirement of the energy watchdog for a reduction in the prices and quantities of electricity from renewable sources and from the two US-owned thermal power plants, AES Maritsa East 1, and ContourGlobal Maritsa East 3.

A few days ago, DKEVR sent a complaint to the European Commission, asking it to define the contracts of the National Electric Company (NEK) envisaging purchase obligations to thermal power plants AES Maritsa East 1 and ContourGlobal Maritsa East 3 as unauthorized state aid and the contracts with renewable energy producers as excessive state aid.

The ambassadors caution that measures of this kind will not solve the serious challenges which Bulgaria’s energy sector faces but will further erode the viability of the electricity system.

The diplomats point out that the watchdog proposes temporary solutions which are not a part of a strategic decision for ensuring the recovery and long-term development of the sector.

They emphasize that the measures proposed by DKEVR could have a substantial negative impact on the companies, at the same time doing damage to the banks which financed them.

The ambassadors remind that the investors signed the contracts with the Bulgarian state “in good faith and in a spirit of trust.”

In their letter to Parliament Speaker Mihail Mikov, the ambassadors offer to...