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From Bulgaria

21.04.2016 15:05

Loan Interest of Bulgarian NEK to Be Compensated Via Electricity Prices (Regulator)

NEK said it will need BGN 68 m (about EUR 34 m) for the year ahead from the ‘Security of the Energy System’ Fund, to cover the loan interest

AUTHOR: publics.bg

© kenteegardin, flickr.com

The expenses that the state-run National Electricity Company (NEK) will incur due to the upcoming borrowing of EUR 650 m through a bond emission should be calculated in the price of electricity, Bulgarian Energy and Water Regulatory Commission (EWRC) chairman Prof. Ivan Ivanov said, as quoted by BTA.

“If there is an agreement with NEK’s creditors, this will be a good sign, because NEK will be able to pay its debts. It is only logical that a credit should be paid and, of course, we [the energy regulator] will acknowledge these expenses”, Prof. Ivanov said.

The Bulgarian Energy Holding – parent structure of NEK – is expecting to obtain an EUR 650 m loan from a bank consortium of Ваnса IMI, Bank of China and J.P. Morgan Securities within days. In its recent pricing request to the energy regulator NEK said it will need BGN 68 m (about EUR 34 m) for the year ahead from the ‘Security of the Energy System’ Fund, to cover the loan interest. The fund gathers 5 per cent of the incomes of all energy producers, distributors and network operators.