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Wednesday, 02 September 2015 11:00

Bulgaria and US power company reach deal to drop prices

Bulgaria’s National Electric Company (NEK) and US-owned thermal power plant AES 3C Maritza East I agreed on amending the long-term contract for purchasing electricity, announced on Tuesday, Caspian Energy News (www.caspianenergy.net) reports with reference to the Anadolu Agency.

Once the agreement is realized, the capacity price will drop by 14 percent, which was negotiated in April and it concerns the capacity price of AES 3C Maritza East I thermal power plant, according to Turkey's economy ministry.

With the amendments to the agreement, Bulgaria’s state-owned power utility is to save around 50 million Bulgarian Lev (BGN) ($28.7 million) a year, or a total of BGN 550 million ($316.3 million) by 2026, when the contract with the US-owned thermal power plant expires.

However, the purchase agreement cannot enter into force before the state pays its debts to the two entities with which it has an agreement, AES 3C Maritza East I and another US-owned thermal power plant, "ConturGlobal Maritza - East 3.

The state-owned power utility owed nearly BGN 800 million ($460.1 million) to the two thermal power plants in April, according to reports of investor.bg.

The energy ministry of Bulgaria is still looking for financial support from credit institutions to pay its debts to the two US-owned thermal power plants.

The Maritza East I Project was conceived due to Bulgaria’s need of a new generation power capacity to meet electricity demands of the country for the next 15 to 20 years, according to company's webpage.

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