AOBE CONTACTED THE INSTITUTIONS ABOUT THE HIGH ELECTRICITY PRICES

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The Association of  Organizations of Bulgarian Employers’ (AOBE) sent a  signal  to the Prosecutor General’s Office, the Specialized Prosecutor’s Office, the Sofia City Prosecutor’s Office, the Ministry of Interior, the State Agency for National Security, the CDCOC, and the Commission for Protection of Competition. The grounds for referring to these institutions are established data, allowing to make a reasonable assumption of  a crime of a general nature , which with its size and scope endangers the economy and national security of the Republic of Bulgaria. Taking into account the number of persons involved and participating in the achievement of the specific result, it can also be assumed that there is a permanently structured criminal association, which aims to commit a crime.

You will find more information below in the full text of the  signal and its annexes.


TO

MR. IVAN GESHEV,  CHIEF PROSECUTOR OF THE REPUBLIC OF BULGARIA

MRS. VALENTINA MADJAROVA,  ADMINISTRATIVE HEAD OF SPECIALIZED PROSECUTOR’S OFFICE

MRS. ILIANA KIRILOVA,  ADMINISTRATIVE HEAD OF THE SOFIA CITY PROSECUTOR’S OFFICE

Mr. BOYKO RASHKOV,  MINISTER OF INTERNAL AFFAIRS

Mr. PLAMEN TONCHEV,  CHAIRMAN OF THE STATE AGENCY “NATIONAL SECURITY”

CHIEF COMMISSIONER KALIN STOYANOV,  DIRECTOR OF GDBOP-MI

COPY TO

Mr. IVAN IVANOV,  CHAIRMAN OF EWRC

MRS. JULIA NENKOVA,  CHAIRMAN OF THE COMMISSION FOR PROTECTION OF COMPETITION

SIGNAL

FROM

Vasil Georgiev Velev,  in his capacity as Chairman of the Management Board of the Association of Industrial Capital in Bulgaria , BULSTAT: 121442528, with address: Sofia, Sofia Municipality, Oborishte District, 15 Trakia Str.

Dobri Dimitrov Mitrev, in his capacity of Secretary General and member of the Management Board of the Bulgarian Chamber of Commerce – Union of Bulgarian Business , BULSTAT: 831391124, with address: Sofia, Sofia Municipality, Oborishte District, 76 Chataldja Str.

Tsvetan Atanasov Simeonov, in his capacity of Chairman of the Management Board of the Bulgarian Chamber of Commerce and Industry,  BULSTAT: 000703066, with address: Sofia, Sofia Municipality, Oborishte District, 9 Iskar Str.

Kiril Petrov Domuschiev, Chairman of the Confederation of Employers and Industrialists in Bulgaria – the Voice of Bulgarian Business,  BULSTAT: 130439965, with address: Sofia, Sofia Municipality, Triaditsa District, 8 Han Asparuh Street

DEAR MR. GESHEV,

DEAR MADOR MAJAROVA,

DEAR MRS. KIRILOVA,

DEAR MR. RASHKOV,

DEAR MR. TONCHEV,

DEAR MR. STOYANOV,

Reasons to refer you to this signal are established data, allowing to make a reasonable assumption of a crime of a general nature, which with its size and scope threatens the economy and national security of the Republic of Bulgaria. Taking into account the number of persons involved and participating in the achievement of the specific target result, we can also assume that there is a permanently structured criminal association, which aims to commit a crime. Therefore, in view of your powers, we bring to your attention the factual circumstances of the above conclusions, which are:

On the electricity market operated on the Bulgarian Independent Energy Exchange (IBEX), on the platform “Day Ahead” the  average  price for 1 MWh of base capacity for the period July 27 – August 5, 2021 is in the range of  BGN 177.89 – BGN 330.73  – the most most expensive throughout Europe, reaching even over BGN 400.00 / MWh per hour (see Appendix № 1 in  PDF  or  MS Excel). Moreover, this price is over 50% higher than the EU average and over 75% higher than the price of electricity in Germany, France, Austria and Switzerland and more than two and a half times the price for the same period last year. year. This result is a cumulative effect on the one hand from the increased demand (including signs of stock market manipulation) on the Day Ahead platform, and on the other hand from the insufficient and poorly structured supply of electricity by the producers of the same.

The subject of this signal is the insufficient supply of quantities by the producers of electricity on the platform “Day Ahead” and in particular by the state company TPP “Maritsa East 2″ EAD, stating the following specific facts that allow us to make a reasonable assumption of a crime of a general nature.

  1. In 2020, TPP Maritza Iztok 2 achieved a record loss of over BGN 341 million, with the accumulated loss (including losses from previous years) exceeding BGN 1.15 billion. The negative financial result for 2020 is almost 75% of the revenues realized by the company and the TPP are literally facing bankruptcy due to over-indebtedness, as its current liabilities significantly exceed its current assets.
  2. According to Decision № Ц-27 of 01.07.2021 of the Energy and Water Regulatory Commission, the state company TPP “Maritsa East 2” EAD is entirely at a profit at price levels of electricity above BGN 220.83 / MWh, ie. at this price of electricity the company covers all its conditionally fixed and variable costs related to the production of electricity. Every lev above this price brings the company an operating profit. In the same decision № Ц-27 of 01.07.2021 of the Commission for Energy and Water Regulation, page 29 in the table of technical and economic indicators are indicated as the net electricity, forecast for the period 01.07.2021 – 30.06.2022. in the amount of BGN 6,501,789 MWh, as well as the amount of the estimated variable costs – BGN 1,115,651 thousand In other words, the EWRC experts point out that at a price above BGN 171.59. / MWh fully cover the variable costs of the company for the production of electricity, ie. each BGN above this selling price (up to BGN 220.83 / MWh) will reduce the possible losses of the company from the reported conditional fixed costs.
  3. At the same time, during the specific period, July 27 – August 5, 2021, the state company TPP “Maritsa East 2″ EAD does not offer electricity on the platform “Day Ahead” or offers it at 20-25% of its available capacity. With an installed capacity of 1610 MW for a total of 8 units and available capacity of the period in the range – 1207-1063 MW (see Appendix №2 in  PDF  or  MS Word ), TPP “Maritsa East 2″ EAD offers energy from only 2 units , adding another unit only after public public reaction and dissatisfaction – respectively a total of between 230 and 500 MW in the individual time periods (see Appendix № 3 in  PDF  or  MS Excel ).
  4. The lack of supply even at incomplete capacity on the part of the state-owned company TPP Maritza East 2 EAD  deprives the company of potential profits that it could make  and at the same time maintains an artificially high price of electricity on the day ahead of the IBEX platform.

What has been said so far illustrates behavior that can in no way be considered responsible, much less good governance. We do not work with the available, but with underestimated in times capacity (averaged about 400 MW at a possible 1207 MW), do not use the opportunities to make profits at an appropriate price level, do not use the opportunities to reduce accumulated losses, such as insufficient supply  in one with a number of “buy” offers, which arouse serious suspicions of stock market manipulation , keep the high price and practically destroy the Bulgarian industry.

In our opinion, the stated inaction is a constitutive act. Given that this example – July 27 – August 5, 2021 is far from an accident or an isolated case, there is a reasonable assumption in our opinion that this is a continuing crime.

From the above it is established another inaction and non-fulfillment of obligations by persons with management functions in TPP “Maritsa East 2″ EAD and BEH, as well as by the Minister of Energy as a principal,  which is essentially a pricing element of the electricity market, as a direct affects the competitiveness of Bulgarian industry (which competes with markets with significantly cheaper electricity), as well as the prices of goods and services for end users. Thus, once again, Bulgarian citizens and Bulgarian businesses will pay for the irresponsibility and mismanagement that has become a practice in Bulgarian state-owned companies, including especially in the energy sector. The interest of both the State and its company TPP Maritza East 2 and third parties – electricity consumers (industrial enterprises, hospitals, schools, municipal and state administrations, etc.) has been damaged.

DEAR MR. GESHEV,

DEAR MADOR MAJAROVA,

DEAR MRS. KIRILOVA,

DEAR MR. RASHKOV,

DEAR MR. TONCHEV,

DEAR MR. STOYANOV,

In view of your function of supervising legality in the Republic of Bulgaria and given the data set out in this signal, please order a circumstantial inspection to establish the facts of the case and in case of assessment of sufficient data on crimes committed, order the initiation of relevant pre-trial proceedings.

Attachments:  According to the text.

WITH RESPECT,

VASIL VELEV,  CHAIRMAN OF THE BOARD OF AIKB,
ROTARY CHAIRMAN OF THE  ASSOCIATION OF  ORGANIZATIONS OF BULGARIAN EMPLOYERS’ FOR 2021

ON BEHALF AND ON ORDER OF  BICA, BIA, BCCI and CEIBG