site.bta CEO: NEK Should Sell Electricity at 200 lv/MWh to Avoid Losses

CEO: NEK Should Sell Electricity at 200 lv/MWh to Avoid Losses

Sofia, December 11 (BTA) - Speaking to journalists on Thursday,
National Electric Company (NEK) CEO Peter Iliev said that
between January and October NEK generated over 850 million leva
in losses on the regulated market. Also, it owes 1.2 billion
leva to energy producers and 2.3 billion leva to other
businesses and companies.

Iliev said that NEK's net financial losses will exceed 600
million leva at the end of 2014 and that the company will
continue to spiral downwards if no steps are taken.

Iliev said that NEK buys electricity at 190 lv/MWh and sells it
at 125 lv/MWh. To avoid losses, NEK should sell electricity at
at least 200 lv/MWh.

The NEK CEO said that NEK generates losses from reselling
N-power from Kozloduy to energy distributors because of lower
night rates and because of the co-generation facilities which
are subsidized. He said that NEK sustains losses because
consumption is not constant. Iliev is against a single quota for
 all RES producers on the market.

He dismissed fears that NEK will go bankrupt or that there will
be power shortages.

He said that the losses will most likely be paid by electricity
producers and consumers. He said that if the price of
electricity went up, people would be unable to pay it.

Iliev said that NEK may make a profit in winter when consumption
 is higher and RES power share is lower.