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From Bulgaria

31.08.2011 15:44

Bulgaria: Financing for Grid Maintenance Sought through Utilities Reorganization

Utilities representatives commented that they would actually have to comply further with the forthcoming Fourth Package

AUTHOR: publics.bg

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The State Energy and Water Regulatory Commission (SEWRC) is considering restructuring of electricity utilities in order to fully comply with the EU Third Liberalization Package, Angel Semerdzhiev, Chairman of the SEWRC, said, as quoted by Mediapool. He confirmed that a further unbundling of energy distribution and supply.

The first stage of the unbundling in Bulgaria started about 5 years ago corresponding with the Second Liberalization Package. Currently, however, the three utilities which operate in separate regions of the country do not share a unified structure.

Utilities representatives commented that they would actually have to comply further with the forthcoming Fourth Package.

Semerdzhiev did not elaborate on the planned restructuring, but said that all outsourced activities are to be regulated in order to bring bore transparency. Utilities are to start calling for tenders in order to reduce the expenses for such activities. Semerdzhiev said that this would bring more financing for the maintenance of the grid. In his words it would “also reduce the effect of a future electricity price increase during the new regulatory period which starts July 1, 2012”.

He said that utilities have adopted measures for the quicker buy-out of electrical substations and other infrastructure built by construction companies and already connected to the grid.

The state-controlled National Electricity Company has already signed contracts with the three utilities, run by local branches of CEZ, E.ON and EVN, for electricity trading.