Prime Minister Kiril Petkov: SFIA inspections before granting aid to municipalities for electricity bills

The Ministry of Interior is investigating a deliberate poor-quality repair of Chaira SHPP in favor of other economic entities, said Boyko Rashkov

Energy / Bulgaria
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Source: BTA

An inspection by the State Financial Inspection Agency (SFIA) will be sent to any municipality that has a shortage and inability to pay its electricity and other services bills and seeks state support. The aim will be for the state to be sure that the lack of funds is not a function of non-transparent public procurement. This was stated by Prime Minister Kiril Petkov to journalists at the Council of Ministers after the end of the government session, BTA reported.

He added that each municipality has the opportunity to request additional funds, but its public procurement will have to be reviewed to make it clear that the lack of funds is not due to bad practices. The Prime Minister also announced that a working group has been formed between the Ministry of Energy and the Ministry of Finance, which will assess the needs for supporting municipalities.

For his part, Energy Minister Alexander Nikolov clarified that the working group will assess the amount of total electricity costs of municipalities and whether there will be additional compensation for them. He added that the working group will also check whether the municipalities that received assistance under the so-called Norwegian program has actually implemented energy efficiency measures. "When all the data and real needs of the respective municipalities are established, their support will be started," Nikolov said.

Regarding the change of management of Bulgargaz, Kiril Petkov reiterated that it was necessary, as natural gas would not have risen by 30% from January 1 if it had done its job properly. The Prime Minister added that simply dismissal of someone who caused damage will not be a sufficient sanction, so the case was handed over for inspection by the Interior Ministry. "Anyone who makes wrong decisions that cost Bulgarian consumers something must be held accountable," he said.

The Prime Minister declined to comment on the criticism of the issue, but expressed hope that with the new management of Bulgargaz and the new EWRC the dialogue will be more constructive and the result will be lower bills, better regulation and the end user to stop to pay for other people's mistakes.

Interior Minister Boyko Rashkov announced that his ministry is conducting an investigation into high gas prices in Bulgaria. He noted that as a state-owned company, Bulgargaz has contributed to the current situation with the prices of natural gas in Bulgaria. Therefore, the Ministry of Interior checks whether this is a consequence of the international situation or is the result of actions of certain stakeholders within the country. It became clear from his words that it is also being checked whether someone has not defended their own or someone else's interests, instead of those of the state and its business and citizens. Rashkov also clarified that the reason for the investigation was realized profits, which, if they were not realized, would not have been so great increase in natural gas prices. He did not rule out the possibility of accusations against "high-ranking officials" from Bulgargaz even after the investigation is over. But he did not specify whether it was the released management or others who are still in the company. It also became clear from Rashkov's words that there will probably be accusations against at least one person, but there may be more.

The Minister of Interior also noted that the Ministry of Interior has come to the conclusion that the behavior of the EWRC is also not accidental. Therefore, investigative actions are currently being carried out against experts from the Commission. Documents are also being collected, which will be included in the evidence of the pre-trial proceedings.

Rashkov also noted that the Interior Ministry is also investigating the repairs of Chaira SHPP. Explaining that there are suspicions that in recent years the power built to cover peak loads and balance the energy system has been deliberately ruined in the interests of a particular economic entity. The Ministry of the Interior is clear about the entity in whose favor the Chaira SHPP was damaged, but the investigation continues. It is also checked why the repair works there are given to be performed by "garage companies" instead of by the specialists who built the plant. According to Rashkov, this has caused huge material damage, due to which the Ministry of Interior cannot remain a passive observer of the situation.

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