ВIA OPINION ON TRANSFORMATION OF ERP IN COMPANIES WITH MAJORITY STATE OWNERSHIP

Bulgarian Industrial Association  sent to the National Assembly an opinion on a draft decision for transformation of the electricity companies in the state-owned

A bill for a decision Bulgarian Industrial Association expresses its negative position with the following arguments:

• The transformation of the electricity distribution companies in companies with majority state ownership is essentially an act of nationalization.
• Replacing investors reputation and experience in the application of established European practices of government structures unclear rules will create turmoil in the management of companies and is a risk to security of supply.
• No assessment of the financial and economic consequences for consumers and the budget of such an act;
• Increases the uncertainty and unpredictability of the business environment with long-term negative consequences;
• The State should effectively regulate natural monopolies, preventing consumers from abuse of monopoly;
• Any energy project is to be implemented in strict compliance with Bulgarian and European legislation, and state intervention in the electricity market should be limited to cases where there is a real threat to a shortage of capacity and security of supply.