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Released February 26, 2013 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - The high cost of electricity and widespread protests over allegations of corruption and energy monopolies has led to the collapse of the Bulgarian government.
The government cabinet, led by Prime Minister Boiko Borisov, resigned last week after tens of thousands Bulgarians took to the streets in protest of unfair electricity bills. Protesters blocked major cities including Sofia, Plovdiv and Varna as well as many smaller cities, calling for an end to energy monopolies.
The turmoil has thrown the energy question in the country into the global spotlight with many Bulgarians blaming the companies in charge of electricity distribution, including CEZ Bulgaria, Poland's Energo-Pro and Austria's EVN AG. In recent weeks, the country's State Energy and Water Regulation Commission announced that it was going to revoke CEZ's licence, claiming it had found 21 violations. Albania's energy regulator revoked the licence of another CEZ subsidiary in January.
Parent company of CEZ Bulgaria, CEZ Group (PRG:BAACEZ) (Prague, Czech Republic),has denied any wrongdoing.
"The whole situation is unfortunately influenced by political reasons with the upcoming parliamentary elections," the company said in a statement. "CEZ is not to blame, and this for several reasons - higher bills for electricity were caused by colder winters, higher consumption over Christmas and the extension of the reading period due to holidays. Last year, the Bulgarian Energy Regulatory Office (DKEVR) increased electricity prices by more than 13%, mainly due to the promotion of renewable sources."
The country's president has promised that electricity prices will fall by 8% by March in an effort to calm the situation and early elections for a new government wil be called soon.
The country's major source of electricity is the 40-year old Kozloduy nuclear plant located near the Romanian border, which has a generating capacity of 2000-megawatts (MW) and accounts for around 40% of the country's electricity. There are plans to extend the life of its two reactors for another four years. For additional information, see August 29, 2012, article - Bulgaria Tries to Strengthen Nuclear Energy Capacity with Kozloduy Unit.
Last month, Bulgaria's citizens voted in favour of building a new nuclear power plant (NPP) at Belene in a non-binding national referendum. The new plant would have a generating capacity of 2,000 MW but the project has had a troubled history, including being abandoned last year by the government for being too expensive. To date, around 715 million ($950 million) has already been spent by the state on the project. For additional information, see January 30, 2013, article - Bulgaria votes 'Yes' for New Nuclear Plant.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The government cabinet, led by Prime Minister Boiko Borisov, resigned last week after tens of thousands Bulgarians took to the streets in protest of unfair electricity bills. Protesters blocked major cities including Sofia, Plovdiv and Varna as well as many smaller cities, calling for an end to energy monopolies.
The turmoil has thrown the energy question in the country into the global spotlight with many Bulgarians blaming the companies in charge of electricity distribution, including CEZ Bulgaria, Poland's Energo-Pro and Austria's EVN AG. In recent weeks, the country's State Energy and Water Regulation Commission announced that it was going to revoke CEZ's licence, claiming it had found 21 violations. Albania's energy regulator revoked the licence of another CEZ subsidiary in January.
Parent company of CEZ Bulgaria, CEZ Group (PRG:BAACEZ) (Prague, Czech Republic),has denied any wrongdoing.
"The whole situation is unfortunately influenced by political reasons with the upcoming parliamentary elections," the company said in a statement. "CEZ is not to blame, and this for several reasons - higher bills for electricity were caused by colder winters, higher consumption over Christmas and the extension of the reading period due to holidays. Last year, the Bulgarian Energy Regulatory Office (DKEVR) increased electricity prices by more than 13%, mainly due to the promotion of renewable sources."
The country's president has promised that electricity prices will fall by 8% by March in an effort to calm the situation and early elections for a new government wil be called soon.
The country's major source of electricity is the 40-year old Kozloduy nuclear plant located near the Romanian border, which has a generating capacity of 2000-megawatts (MW) and accounts for around 40% of the country's electricity. There are plans to extend the life of its two reactors for another four years. For additional information, see August 29, 2012, article - Bulgaria Tries to Strengthen Nuclear Energy Capacity with Kozloduy Unit.
Last month, Bulgaria's citizens voted in favour of building a new nuclear power plant (NPP) at Belene in a non-binding national referendum. The new plant would have a generating capacity of 2,000 MW but the project has had a troubled history, including being abandoned last year by the government for being too expensive. To date, around 715 million ($950 million) has already been spent by the state on the project. For additional information, see January 30, 2013, article - Bulgaria votes 'Yes' for New Nuclear Plant.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
