The Electricity System Operator (ESO EAD) reported a loss of 40 million BGN for the first half of 2014 due to economic crisis and heavy price conditions
The Preliminary Financial Report published on the web site of the Ministry of Finance (BG version only) indicates “the low regulated prices, effective 1 January 2014” as the reason for that.
As ESO EAD does not perform any other trading activity except that, according to its license obligations, its financial state is directly dependent on the financial framework, set by SEWRC, which “does not cover the actual costs of the company relate to guaranteeing the security of electricity supply in the country”. Since 4 February 2014 ESO EAD is a universal successor of the electricity transmission operations with approved transmission price of 4.15 BGN/MWh (over two times lower than the previous period of 9.71 BGN/MWh). The access price is also two times lower, compared to the one of the previous period – 6.48 BGN/MWh, currently at a level of 2.76 BGN/MWh.
The cost and revenue effectiveness indicators show a negative and deteriorating operational position of the company. For 1 BGN spent the company received revenue of 0.83 BGN and a loss of 0.17 BGN is observed. In the previous period for 1 BGN spent the company received 0.96 BGN thus the loss amounted at 0.04 BGN. These processes are also visible in the steepening of the negative trends: the financial result for the period January-June 2013 is a loss of 9 million BGN and its amount for the same period in 2014 is four times bigger – 40 million BGN.
The financial result spread over the licensed activities, is as follows:
- Management of the electricity system revenue: 130 billion BGN
- Management of the electricity system costs: 87 billion BGN
- Financial result of the management of the electricity system activity: 43 billion BGN
- Transmission revenue: 73 billion BGN
- Transmission costs: 156 billion BGN
- Financial result of the transmission activity: 83 billion BGN
Detailed information about the level of net exposure of ESO EAD to different banks is also presented in the Preliminary Financial Report of the company, as well as about the actions undertook in the second ten days of June “towards “dispersal” of the available funds (from Corporate Commercial Bank), in accordance with Council of Ministers Decree 127”.
