European Energy Forum Takes Place in Sofia

A European energy forum is taking place on 15^th of March in Sofia, within the framework of the Bulgarian Presidency of the Council of the EU. The forum was opened by Minister of Energy Temenuzhka Petkova. The Vice-President of the European Commission Maroš Šefčovič, also responsible for the Energy Union, arrived in Bulgaria to attend the forum.

Quite unexpectedly, the issue of the sale of CEZ's assets in Bulgaria became part of the first energy forum within the Bulgarian Presidency. EU Energy Commissioner Maroš Šefčovič commented that at this stage no clear assessment can be made as to what extent the EC can pronounce on whether there is an unlawful state aid in the event of a transaction between the state and CEZ-group.

He explained that all possible parameters of the purchase of CEZ by the state and the share of the participation should be clear first. It is only then that the regulatory committees in Brussels will give their opinion. Asked what the European Court can do in relation to arbitrage case by CEZ to Bulgaria, he explained that it is not the job of the European Commissioner and the EC to evaluate this issue.

Managers of "Inercom”, the Bulgarian company, which is about to finalize the purchase of CEZ-Bulgaria. Milena Stoeva explained that the negotiations are on-going. At this stage nothing specific can be said, but one thing is clear - the deal is already in the Commission for Protection of Competition. They have 20 days to decide whether the purchase violates antitrust law. If additional documents are requested, then the deadline will be extended by 15 more days and then by 4 days. For almost two months, the Bulgarian regulator will have the technological time to decide on the future deal.

Veselin Zahariev, Financial Advisor of Inercom, said the negotiations with the financial institutions, which have already expressed their willingness to support the deal by granting loans, continue. The share of own capital of "Inercom" and the share of borrowed capital from the International Financial Consortium is currently being discussed. This time, it also did not become clear which banks are involved in these negotiations. Inercom said they learned yesterday about the establishment of a special ad-hoc committee of inquiry in Parliament, which should look into the facts and circumstances surrounding the deal with CEZ, but at this stage he said they would abstain from commenting.

EU Commissioner Šefchovic said that him and prime minister Boyko Borissov discussed the big regional energy projects in the morning. They also talked about the construction of a gas hub, which is supported by Europe. Temenuzhka Petkova said the public procurement contract for the designer's appointment had ended. Interconnectors with Greece and Romania, the future gas connection with Turkey and the one with Serbia, for which EU funds have been allocated, have been discussed. Gas supplies from Russia were also discussed.