The agreement between NEK and AES is in favor of the consumers

July 13, 2015

The agreement between the National Electricity Company (NEK) and AES 3C Maritza East I (Maritza) reached on April, 8th 2015 for an amendment to the Power Purchase Agreement (PPA) that the plant has with NEK, contributes to the Bulgarian Government goal to restructure and reform the energy sector. This deal results in immediate reductions to the cost of electricity to NEK, said the executive director of AES Bulgaria Olivier Marquette. He stressed that the constructive dialog between the Bulgarian authorities and AES was fundamental to reach this agreement. This outcome supports the government efforts to attract foreign investment to the National economy.

The agreement between NEK and AES states that Maritza will decrease its capacity price by 14 percent immediately upon receiving full payment of arrears. This will result in annual savings for NEK of about 50 million leva, and a cumulative savings of about 550 million leva over the remaining term of the PPA, which expires in 2026. The agreement has been approved by the Bulgarian Regulator, and has received the support and approvals from the pool of 24 European and Bulgarian Banks, along with the European Bank for Reconstruction and Development, the World Bank, and French and German Export Credit Agencies.

The decrease of our prices, together with the package of legislative measures addressing NEK financial sustainability are the right steps towards addressing the difficulties of the energy sector, Marquette announced. He pointed out that as a long-term investor in the country AES has always been loyal and a predictable partner of the country and will continue to take and support steps that are in favor of the stabilization of the Bulgarian Energy Sector. The PPA is not an obstacle for the implementation of the liberalized energy market and the European experience shows that there are a lot of markets on which such formula is successfully working.

We are part of the solution of the difficulties that the energy sector is facing at the moment and will continue to support the will of the government for a deep and broad reforms of the sector, said Marquette.