The National Electricity Company to save about BGN 1 Billion after amending agreements with AES Maritza East 1 TPP and Contourglobal Maritsa East 3 TPP

The National Electricity Company (NEK) is expected to incur savings of about BGN 1 billion by the end of the existing long-term contracts with AES Maritza East 1 TPP and ContourGlobal Maritsa East 3 TPP.  On an annual basis, NEK is expected to save about BGN 100 million. This becomes possible after agreements for the amendment of long-term agreements with the two power companies were signed on 8 April at an official ceremony in the presence of Prime Minister Boyko Borissov and Minister of Energy Temenuzhka Petkova.

The new arrangements regulate a cut of capacity payments by a total of 31% under the two agreements – 17 % for ContourGlobal Maritsa East 3 and 14% for AES Maritza East 1. In exchange, NEK agrees to make about BGN 700 million in late payments to the two companies. The compromise is considered a precedent in the Bulgarian Energy sector.

Prime Minister Boyko Borissov thanked the partners of the two US power companies for the constructive dialogue during the negotiations, which had made possible the important step towards stability in the energy system.

“Negotiations were difficult but we agreed on the deal because we have confidence in the Prime Minister and the Government that they are going to stabilize the electricity sector,” AES Corporation President for Europe Julian Nebrada said.

“The agreement that we have reached is a good compromise. We are confident that the government would continue with its reforms in the sector,” ContourGlobal Maritsa East 3 CEO Garry Levesley said.

US Ambassador to Bulgaria H.E. Ms. Marcie Ries said that the signing of the agreements would contribute to the positive view of the business environment in Bulgaria and would attract more US investors.