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Employers and Unions Demand Termination of Contracts with US Power Plants


Employers and trade unions have come out with a common appeal for the annulment of contracts between the state and the US power plants.


 

They remind that one of the power plants investment has already been fully paid off, which has been confirmed by Brussels and by a leading global consulting company hired by the Bulgarian government.

"We are categorical that Bulgarian consumers do not have" excessive" millions for illicit profits through inadmissible state aid. At the same time, electricity prices for the Bulgarian industry are the highest in the EU again and we are running out of patience. No time for another adjournment. A capacity mechanism is yet to be introduced, where coal plants can obtain funds in competition with other producers  of BG and from abroad and in accordance with European rules, " this is stated in their mutual stand.

Another argument of business and trade unions is that, pursuant to the contracts signed with both plants, they receive state aid which is contrary to EU law. "Only for the regulatory year from 01.07.2019 to 30.06.2020, without the necessary approval by the EC, more than 700 million levs will be paid  in a non-market-based way to the investors in A&E - 3C Maritza East 1" and Contour Global Maritza East 3. BGN 301 million of the sum is for the second fully paid power plant ", the organizations specify and point out that state guarantees for the investments are forbidden by the Treaty on the Functioning of the EU, which was also signed by Bulgaria at the time of accession.


"Yes, the Bulgarian energy system needs both plants. There will not be enough electricity without their production. Yes, they use a local resource - Bulgarian coal. But the same rules and laws apply to them. Competition and the rule of law is valid for everyone! It is high time the competent authorities  took steps to put an end to the unnecessary burden on Bulgarian businesses and held accountable those who had to offer timely solutions and actions to terminate the unlawful burden on Bulgarian businesses and households." ,is stated in their position.


The social partners ask the government for an urgent discussion of the matter  at a trilogue meeting.

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