CITUB proposes that the State Oil Company also become an electricity trader

The Confederation of Independent Trade Unions in Bulgaria (CITUB) proposes that the State Oil Company to become an electricity trader and that the company supply electricity to consumers on the free market. This was announced by the President of CITUB Plamen Dimitrov during the discussion of the draft Strategy for Sustainable Energy Development of Bulgaria until 2030 with a horizon to 2050. The main goal of this company is to be a kind of "anchor" or benchmark for all private entities in the electricity trade to be "subdued" in the market logic - to have no fields for speculation and cartels in the energy sector. This company will ensure that there is an additional, independent player who is not looking for maximum profits, but real competition in the market, Dimitrov added.

Another proposal is for the state to take over the trade deficit of the National Electricity Company (NEK), which according to the calculations of the trade unions is currently about 1.5 billion levs. "Until now, the Bulgarian Energy Holding was the buffer that balanced the whole system. Increasing deficits are already a systemic risk and the consequences can be severe if there is no plan on how to reduce them," Dimitrov added.

CITUB also sharply criticized the proposals for a new energy strategy due to the lack of specifics and measures with which basic capacities Bulgaria will work in the coming years. The unions even predicted that a shortage of electricity is expected in Bulgaria after 2025. It is then that it will become too difficult for the most of the coal-fired power plants in Bulgaria to operate.

The trade unions also criticized the Belene NPP project. We see that a huge resource is in the form of assets - BGN 3 billion have already been invested in the Belene project. But we do not want to state publicly this project that there is a huge risk that it will get nowhere. Even in the draft strategy we are now talking about guaranteeing nuclear capacity and their future increase, Dimitrov commented. However, he expressed serious skepticism about whether this project would continue to develop.

With regard to the energy strategy, CITUB outlined several problems that they believe should be a solution. "Energy market liberalization is hampered by the lack of a solution for vulnerable consumers. Reducing harmful emissions is also a huge challenge for Bulgaria. "Emission problems are becoming severe, even unsolvable. And such an option is not commented on in the strategy," Dimitrov added. According to him, it seems that Bulgaria will lose the battle in the EU after a 55% reduction in harmful emissions is adopted by 2030.

There should be different scenarios in the strategy, including to stimulate the development of renewable capacities. More vision is needed for the development of new energy technologies, for example in the Maritza Iztok complex. The creation of an industrial center and steam and gas cogeneration can be considered there, the unions explained.

CITUB believes that the draft Strategy for Sustainable Energy Development of Bulgaria is not good. According to Dimitrov, this project is highly wishful. It lacks a critical analysis of the experience of implementing the measures under the current strategy until 2020. In addition, it lacks an economic analysis to justify the realism of the stated intentions, especially in the field of generating capacity, including large infrastructure projects with national funding. .

Next, the implementation of the policies is linked to the main financing of European funds, but it does not seem to take into account the specific requirements for this financial source. In addition, there is a lack of vision for state property management in the energy sector. There is no scenario in which to see all the possibilities - positive, realistic and negative, Dimitrov added.