Energy Regulator Gives Nod to NEK, ESO Split-up
Wednesday, 08 January 2014
The Bulgarian energy regulator has given its approval to the split-up of state-owned electricity company NEK and Electricity System Operator (ESO), a notice on the watchdog’s website indicated.
As a result of the unbundling, NEK will transfer to ESO some 64.3 million levs ($45 million/33 million euro) in debts, which will bring the grid operator's current liabilities to 102.7 million levs, the State Energy Regulatory Commission has decided.
The electricity company will also transfer to its former unit 2.2 billion levs in assets, including 295 substations and an electricity transmission network of 14,732 kilometres, according to the decision. Furthermore, ESO receives a 35-year electricity transmission licence.
The unbundling of the two companies is required under the EU’s Third Energy Liberalisation Package. After the separation, all contracts will be reviewed and adjusted to EU regulations, if needed.
Bulgarian Energy Holding (BEH) - a holding company set up in 2008 which controls Mini Maritza-Iztok, NEK, ESO, Bulgargaz and the country’s sole nuclear power plant Kozloduy - took full control of ESO from NEK in 2013.