Sofia, January 4 (BTA) - The National Federation of Power Engineers with the Confederation of Independent Trade Unions in Bulgaria (CITUB) urges for the adoption of a new energy strategy for Bulgaria, to avoid burdening the energy sector with social functions, and to preserve the Maritza East energy complex.

This is stated in the position of the federation, adopted at a meeting of its Coordination Council on December 16, 2021. The position is published on the website of CITUB. It is related to the coalition agreement, and touches on problems in the sector, proposing solutions. The position was sent to National Assembly Chair Nikola Minchev, Prime Minister Kiril Petkov and Minister of Energy Alexander Nikolov.

It states that the federation insists on the urgent preparation and adoption of a new energy strategy for Bulgaria, as this measure is specified in the long-term goals of the Coalition Agreement, and the topic must be addressed without delay. The federation wants the Ministry of Energy to commit to specific deadlines for the creation, discussion and adoption of the strategy as early as the beginning of 2022. The document should define the priorities and role in the energy sector of: nuclear energy, coal-fired power plants, the electricity grid, and market predictability for development, conservation and security.

The federation insists that the Ministry of Energy summarize the options for building new nuclear facilities, based on existing analyses and propose a decision to the Council of Ministers in the first quarter of 2022.
According to the federation, although the topic of preserving the Maritza East energy complex has been set as a priority, the proposed measures do not clearly show the direction which the government is taking.

They insist that as early as January 2022 the Ministry of Energy should initiate discussions with the trade unions in the Maritza East complex on the production plans, and the specific measures envisaged in the territorial plans for a just transition for jobs, social consequences of the transition to a low-carbon economy, and compensatory mechanisms, the position says.

The Federation draws attention to the serious problem that has arisen with all network companies in connection with the obligation to cover technological losses by purchasing electricity from the stock exchange at much higher than their regulated prices. "The activities of network companies are regulated and should be carried out in the public interest, and artificially created difficulties for their work will have severe consequences for all," the document reads.

"We consider it incorrect to transfer current profits only from state-owned companies to the state budget in a way that hinders their operational activities, including investment, repair and production programmes." According to the federation, it is correct and fair to extend the withdrawal of excess profits to all companies, especially to those who use mechanisms for guaranteed return on investment, such as renewable energy companies.

The federation wants a limit on the actions taken to transfer the current profit, and it urges the Ministry of Energy to prepare a report on the financial transfers and measures to preserve the financial stability of state-owned companies.

According to the federation, the energy sector should not be burdened with social functions. The proposed measures for protection of vulnerable household consumers, and for protection of budgetary and public service organizations from paying unnecessarily high electricity bills should be planned and implemented by other agencies, and the Ministry of Energy should facilitate their implementation, without transferring additional burden on state-owned companies, the position says. It draws attention to the fact that the adopted moratorium on electricity prices has severe consequences for the sector, and in this connection, it calls for the restoration of the legal order for price formation while "ensuring a balance between the interests of energy companies and customers."

MT/МТ/