High electricity exchange prices require urgent measures to ensure the security of the energy system

ENERGO-PRO invests BGN 40 million in the electricity distribution network in North-East Bulgaria for 2021 amid a growing liquidity crisis in the network companies, which threatens future investments and puts at serious risk the expansion, modernization and future maintenance of the facilities

Permanent investments in the construction, rehabilitation and maintenance of the network were a top priority in the work of ERP North, the network company of the ENERGO-PRO Varna group, for the past year. This is despite the difficult situation in the electricity market and the liquidity crisis in the sector resulting from the rise in the price of electricity on the energy exchange. The constant work to improve the electricity distribution network has led to an increase in the quality and security of electricity supply to tens of thousands of households, customers of the company. The company is in constant dialogue with the local government and works daily for the reconstruction of networks and replacement of cable lines if necessary, as well as covering places with increased electricity consumption for the construction of a completely new network. The focus of the last year is the replacement of air and cable lines, the construction of a new network and facilities in the villa areas around the big cities. Migration processes and remote work and training models have changed the consumption profile and placed new demands on network maintenance, which the company seeks to meet.

Among the large-scale projects for the construction of a network and new facilities are:

• Rehabilitation of Varna East substation — BGN 3.2 million
• New power transformers in Chaika and Varna East substations — 2.4 million leva
• Reconstruction of air network on the territory of the municipality of Avren - 230 000 leva
• New 110 kV cable line — Ruse, center — 1,6 million leva
• New junction station Iztok — Ruse for the settlements of Marten, Sandrovo, Nikolovo and Slivo Pole — BGN 400,000
• Reconstruction of low voltage air network in Provadia Municipality and Dalgopol Municipality — BGN 400,000
• Bird protection facilities — BGN 950,000

ENERGO-PRO will meet its commitments under the investment program despite the losses accumulated in the third quarter of this year as a result of the difference in the approved costs of purchasing energy to cover losses on the grid and the real costs of the EPR North. It is expected that by the end of 2021 they will be over BGN 42 million. This leads to major liquidity problems for electricity distribution companies and the need for urgent measures. If not compensated now, these additional costs will put a serious strain on the tariffs of all end customers, including households, in the middle of next year and will lead to a significant increase in the final price of electricity for consumers as well.

ENERGO-PRO relies on assistance from the State in solving the problem of the growing liquidity crisis in electricity distribution companies and reaffirms its commitment to continue fulfilling its licensing obligations, including for investments, in order to guarantee security in the distribution and supply of electricity.