THE STATE PARTICIPATION IN THE E. ON ELECTRICITY DISTRIBUTION COMPANY IS QUESTIONABLE

"CEZ, EVN and E. ON have submitted budgets that reveal their poor financial situation," said yesterday Minister of Economy, Energy and Tourism Traicho Traikov. "Whether this is true and do they have reasons to demand a price increase of up to 14%, however, the State Energy and Water Regulatory Commission will decide," was clear the Minister. As an example of poor financial results he gave E. ON, which planned to operate at a loss this year.

A day earlier, company officials explained that in 2010 the two firms of E. ON Bulgaria had recorded a loss of nearly € 500,000. The managers intend to increase the capital of the companies in Bulgaria and therefore have asked the State, as shareholder, whether it will invest new resources in the company in order to maintain its share. "On this occasion we will have a meeting with Minister of Finance Simeon Djankov," said Traikov.

Traikov explained in an interview for 24 Hours daily that our country is likely to accept a loan from Russia for the construction of Belene NPP, under advantageous interest rates. "The shares of the future Belene project company will be pledged in favour of the Russians, but they will remain Bulgarian property. So the Russian side will receive dividends on the shares until the loan is repaid," said Traikov.