Vassil Shtonov: We have taken serious measures for sustainable development of the economy and energy

For the short period of three months, the caretaker government and MEE made serious efforts to stabilize the economy and energy, which have yielded results and the basis for future sustainable development. Bulgaria's energy sector was in a very difficult situation, and its problems have been accumulated over the last ten years due to the inconsistent policies pursued. That said the Interim Minister of Economy and Energy Vassil Shtonov during a press conference, reporting on the activities of the economic team of the Cabinet.

He stressed that one of the main commitments of his team was to provide data on the actual situation of the sector in the country. According to the analysis made  in the energy sector on the current deficit  accrued in the NEC up to 30 June, 2014,  the public provider  has been accumulated a deficit of  BGN 1.5 billion from the previous years, and  as for any consecutive  year ahead  it was expected that a new deficit of BGN 900 million would be cumulated.

All market participants were clear that the increase in electricity prices was unavoidable. It covered only 20% of the shortage in the energy system, but reduced the annual deficit in the system with BGN 200 million, recalled the Interim Minister. It is crucial to emphasize that this measure does not solve the problems in the sector, said Shtonov and reminded that measures for long –term stabilization have been projected, namely revenues from the sale of carbon emission, limitation of the operation of inefficient plants, an increase in electricity exports and rescheduling the long-term contracts for electricity purchase generated from renewable energy sources and the American thermal power plants.

Due to the Energy Board operation, a consistent dialogue with all interested parties within the energy sector was hold, the Minister said. Thus, any market participant should make a compromise as the stability of the system to be ensured. Vassil Shtonov highlighted that it was important for the caretaker government to make changes in those state companies that were operating inefficiently, and in the SEWRC as well. Thus, the Regulator will work in the interest of citizens, beyond the interest of the party and impartially. We have improved the expert staff in the Regulator, he added. On 5 November 2014 the Council of Ministers adopted the proposed changes in the text of the Energy Act, which improve the structure and operation of the state regulator. The members of the Regulator are to be elected by the National Assembly and the closed meetings are to be limited, as the changes of the law provide.

In addition to the information on the sector status, data reflecting the payments made on behalf the NEC to its counterparties, which increased from 53% to 60% during the government of the caretaker cabinet, were also submitted as well as the documents under the South Stream Project, Shtonov reported. All construction activities on the gas pipeline were suspended on the basis of my protocol decision. The preparatory works were carried out only, as to ensure that the project meets all the requirements of European legislation prior its construction. He also stressed that the interim government has repeatedly stated its support for any project that will provide diversity and independence for our country. Therefore, we have accelerated the work on the gas interconnectors with Romania, Greece, Turkey and Serbia. We prepared an action plan in the event of potential gas crisis in winter – a daily analysis of the risk of possible suspension or limitation of the natural gas supplied from Russia was made. The natural gas supercharge in Chiren  was accelerated up to 480 million cubicle meters, the Minister stressed.

We have made efforts to improve the business environment for small and medium enterprises – a Strategy for smart specialization was adopted in order to identify the unique characteristics, and the potential of the country to be developed in areas where competitive advantages are available, he added. An active  dialogue with Directorate General  "Regional Policy" under the project of the  Operational Programme "Competitiveness and Innovation" 2014 – 2020 is hold. Their comments have been reflected and the updated version of the programme was informally provided to the European Commission on 31October 2014.

With a decision of the Council of Ministers dated 29 October 2014, the mandate of EIF management recycled resources under JEREMIE (2007-2014) initiative was extended, summarized Shtonov.