Nationalisation of the three power distribution companies in Bulgaria,
owned by Austria's EVN, Czech CEZ and Germany's E.ON, was not a priority for the
state and would not reap any dividend, Economy and Energy Minister Traicho
Traikov told private national Nova Televisia on April 9 2010.
Before
becoming a Minister in the summer of 2009, Traikov was a receiver in two utility
companies owned by EVN in Bulgaria.
This was Traikov's first comment
since Prime Minister Boiko Borissov said on April 7 2010 that the three power
distribution companies could have their privatisation contracts cancelled if
they did not pay dividend due to the state over the past five
years.
Currently, the state holds 33 per cent in each of the three
utility companies sold in 2005. On April 7, Borissov said that the Cabinet would
ask for an audit of the three utilities to investigate the discrepancy between
the prices at which the companies bought electricity from state-owned power grid
operator NEK and the ones at which electricity was sold to
consumers.
Bulgarian media quoted analysts speculating that the outburst
was a calculated ploy to force utilities into paying a dividend, since the
companies are allowed, under the terms of the privatisation deals, an annual
profit margin of 12 per cent.
The dividend that Bulgaria would now
receive would stand at between 250 million and 300 million leva, Deputy Economy
Minister Maya Hristova told Bulgarian terrestrial television bTV on April
8.
On April 8, Borissov said that much will depend on the three
companies' willingness to engage in a dialogue. Representatives of the three
utilities met with Borissov later the same day, but no comment was given on what
had been discussed at the meeting.
On April 9, Traikov said that at the
beginning of January 2010 he had held unofficial talks with the three companies
who had offered to pay dividends to the state for 2009.
According to
Traikov, all members of the Cabinet knew about these talks. He also said that if
the state had received dividends it would have reaped no more than 90 million
leva because the net profit of the three companies since their privatisation was
about 500 million leva. Of this sum, only half was subject to dividend and a
mere third would have gone to the state.
The remainder, Traikov said,
would have been paid to foreign shareholders and not reinvested in Bulgaria as
was currently the case. He told Nova Televisia that it was better to have two
thirds of the profit reinvested here instead of leaving Bulgaria for Vienna,
Prague or Berlin. Still he said that, given the current situation with the
Budget the three companies could pay dividend to the state.
In an
interview with Bulgarian National Television on April 8 2010, Angel Semerdjiev,
chairperson of the state Energy and Water Regulatory Commission (EWRC), said
that checks will be launched to see how the three companies had complied with
their investment plans and obligations.
According to him, of the three
Austria's EVN had complied the most with its plans while the other two, CEZ and
E.ON. had not. According to Borissov, the privatisation contracts were signed
without any clear investment obligations, hence he had asked for a probe into
the work of EWRC over the past five years.
The EWRC is independent by law
and has the right to set energy prices in the country and control the work of
energy utilities.