Bulgaria’s New Energy Holding Receives Ministerial Approval

The restructuring of the Bulgarian Energy Holding (BEH) was carried out by spinning off the Maritsa East 2 Thermal Power Plant and Mini Maritsa East into a new holding company. Energy Minister Iva Petrova signed a decision to this effect on Monday, as announced during a meeting of the Energy Commission, according to the ministry.

A check of the Commercial Register shows that the new company has not yet been registered.

“Maritsa East Holding” will also include “Mini Maritsa East – Mine Site Restoration,” currently a subsidiary, which will prepare land disturbed by coal mining for new economic activities. A working group appointed by the minister, in consultation with labor unions and industry organizations, has prepared the reform.

Petrova commented that the goal is to restore the companies to financial health and ensure opportunities for their sustainable development.

Plans call for reassigning some of the employees of “Mini Maritsa-East” to land reclamation activities.

Funding will come primarily from the Just Transition Fund and partially from the state budget; currently approval has been granted for the allocation of €41.6 million from the budget. During Wednesday’s meeting of the relevant committee Energy Minister Iva Petrova announced that the new holding company’s initial capital will be €550 million.

The divestiture of state-owned companies — the thermal power plant and the mines – was an explicit condition set by the European Commission for the disbursement of funds under the Recovery Plan in order to limit cross-subsidization of the two coal-fired companies. For several years successive governments delayed the reform, but ultimately the country was forced to implement it in order to receive European funds.

Translated with DeepL.