Bulgaria's NEK Also Indebted to Varna Thermal Station

Varna's Thermal Power Station is still waiting for BGN 35.4 M of payments by Bulgarian State Electricity Company (NEK).

Representatives of the company managing the power station, which is part of Czech energy group CEZ (one of Bulgaria's three power distributors), announced that NEK has not paid its debts to their subsidiaries for months, Dnevnik.bg has reported.

Since 2010, NEK have repeatedly failed to pay installments to CEZ and to Varna TPS, the officials say. As of March 26, 2014, the State Electricity Company owes BGN 27.3 M to the termal station, but interests have pushed the sum up and it currently amounts to BGN 35.4 M.

The representatives have made clear that NEK should pay the service of supplying electricity which Varna TPS has been assigned.

Lack of payment has resulted in forcing Varna TPS to resort to loans, and this is among the reasons leading the utility to a BGN 67.6 M loss in 2013.

Employees at Varna TPS announced earlier they were preparing a strike after CEZ issued a threat to close down the plant (which has not produced electricity for a week and a half) if the state does not guarantee upcoming investments in the power station and does not deliver on its debts to the thermal unit.

The representatives said they hope that Bulgaria's energy watchdog, the State Commission for Energy and Water Regulation, could intervene to find a way out of the standoff. CEZ has owned 100% of Varna TPS since 2006.

NEK also allegedly owes installments to all the power distributors operating in Bulgaria (CEZ included), but insists that it is actually due to collect BGN 347 M of debts from the companies and has threatened to suspend their licenses if payments are not made until...