Invest in Bulgaria - The Preferred Partner of Investors Seeking Opportunities in Bulgaria
GUGUSHEV & PARTNERS is among the leaders on the Bulgarian legal market Comprehensive Organization of MBA and EMBA Study Trips in Bulgaria
FDI in Bulgaria (13)
Health (4)
Macroeconomic Data (49)
Business (361)
Investments (155)
Infrastructure (97)
Financial (126)
Economy (350)
Construction (14)
Politics (62)
Real Estate (27)
Interesting Facts (24)
Sports (10)
Software and Information Technology (28)
Real Estate (56)
Tourism (112)
Waste Management (9)
Automotive (23)
Electronics (3)
General (81)
Renewable Energy (66)
Agriculture (22)
Construction (90)
Food and Beverage (20)
Textile (2)

Bulgaria's Energy Minister Mulls Levying Energy Exports
Date: 14/04/2015
Bulgaria's Energy Minister Mulls Levying Energy Exports

Electricity generated for exports and for the domestic market should be equally levied with the "liabilities to society" tax, Bulgarian Energy Minister Temenuzhka Petkova has said.

Petkova said in an interview with daily Standart that the current regime was working to the disadvantage of Bulgarian businesses, since their competitors from neighboring countries are able to purchase cheaper energy.

For years Bulgaria has been selling electricity to neighbors with a per kW/h price that could be up to 30% lower than energy sold on the domestic market. On the other hand, the price of electricity used by industrial consumers within the country the "liabilities to society" tax.

She repeated that the measure to remove the "liabilities to society" tax on exported electricity had not stimulated exports and had failed to pour funds into the energy system, against expectations of previous governments.

In her words, it is currently "a few dozens of energy traders", and not certain power plants, that benefit from the difference in price levels.

Asked whether a second agreement with CountourGlobal and AES thermal power plants is possible, Petkova said the deal secured last week is just a part of "the set of short-term and midterm measures which should stabilize the energy system and tap financial holes", and that further moves, including market liberalization, are envisaged to tackle long-standing problems.

Sofia recently amended contracts with owners of both AES Maritza East 1 and ContourGlobal Maritsa East 3 TPP, reducing the price paid by state-owned National Electricity Company (NEK) to the TPPs for the energy they produce by BGN 1 B on a ten-year basis. Numerous governments had come under fire for failing to take the step, which some experts believe could reduce the burden on debt-ridden NEK, where dues worth billions of BGN have been piling up for years.

Commenting on the recent developments regarding the construction of the Kozloduy NPP's Unit 7, with the Bulgarian cabinet failing to approve a shareholders' agreement with US-based Westinghouse on the unit, Petkova said Sofia insisted that work with Westinghouse continue and that a mutually beneficial solution be reached in next rounds of talks.

"Bulgaria has not closed the door to the construction of Unit 7 of the Kozloduy NPP, but there should be a strategic investor," the minister explained. Thus she echoed the words of Prime Minister Boyko Borisov, who earlier said in Parliament the country was unable to uphold the shareholders' agreement unless Westinghouse entered the project as an investor. He explained that otherwise Bulgaria would not be able to afford the construction.

Topic: Economy

Featured District
Invest Bulgaria Charts
Current Account as Percent of GDP
Current Account as Percent of GDP

Current and Capital Account of Bulgaria
Current and Capital Account of Bulgaria

See all charts
Did You Know?
Cost of transportation in Bulgaria
Cost of transportation in Bulgaria
A ticket for the city bus and for the subway in Sofia costs about 30 Euro cents. ... More

Rousse is the largest Bulgarian city on the Danube river. It is situated in the north-eastern part of Bulgaria, 300 km far from the national’s capital Sofia. Rouse’s rich historical past shows that the Danube river was the basis of existence. From it’s foundation up to now, in spite of the names the town had through 19 centuries, it was a Danube harbor.

Intelligence Pathways - Outsource your Business, Competitive Intelligence or Back Office to Bulgaria

Bulgaria Translation - Full service Bulgarian Translation company

© Copyright 2004-2021 Invest Bulgaria Group Ltd, Sofia, Bulgaria. All rights reserved.

Please read Conditions of Use, Copyright Statement and Privacy Policy for this web page and web site.

Лимузини под наем Electric and Hybrid Modules Repair SEO оптимизация Bulgaria Translation Bulgarian Agriculture
Bulgarian Textile Sofia Web Works Bulgarian Coins Intelligence Pathways Bulgarian Outsourcing

Crafted by Sofia Web Works. Maintained by Website Maintenance, the kings of Website Migration.

Our Featured Members