TPP "Maritsa East 2" accumulated a loss of over BGN 341 million in 2020

The Maritsa East 2 State Coal TPP has further deteriorated its financial situation. In the past 2020, the company's loss reached BGN 341.2 million, according to data from the company's consolidated financial statements. In recent years, the plant continues to sink financially. In 2019, the company's pre-tax loss was BGN 208.3 million.

The main reason for the growing loss over the past year is the cost of purchasing greenhouse gas emissions. The company has given nearly BGN 340 million for them. We remind you that BEH also buys part of the necessary quotas and provides them to the coal plant in the form of a loan. Fuel and electricity costs, even staff costs, are falling, but that is not enough to cover huge emissions liabilities. CO2 costs are likely to rise even more this year as the price of a tonne of polluted air reaches record levels of 50 euros. And in order to produce one megawatt of electricity, TPP Maritsa East 2 emits 1.3 tons of CO2 into the atmosphere.

In 2020, TPP Maritsa East 2 produced nearly 3.2 million MWh of electricity. Free market sales were only 152.8 thousand MWh. Thus, over 95 percent of the electricity produced went to household consumers. The sales quota on the regulated market for the period July 2020 - June 2021 is 2.1 million MWh. By order of the Minister of Energy, an additional obligation to serve the public was imposed and the plant provided NEK with additional quantities of electricity in excess of the quota set by the EWRC. Only for the first half of last year the delivered quantities, according to the order of the Minister, are for nearly 2 million MWh.

Revenues from operating activities of TPP "Maritsa East 2" decreased by 32% to BGN 459.6 million, it is clear from the financial statements. Electricity sales fell by 43.6% compared to a year earlier and amounted to 3.2 million MWh.

Liabilities to related parties of the coal plant are for BGN 822.7 million, only to the parent company BEH the loans are for BGN 720.4 million, it is clear from the financial report. On December 31, a trade loan agreement was concluded for the transformation of part of the liabilities of TPP Maritsa East 2 to BEH in the amount of BGN 350 million with a term of validity from July 1, 2020 to June 30, 2025 with one year grace period. The loan was concluded for the purchase of CO2 allowances.

At the beginning of last year, the deputies decided to increase the capital of the coal-fired power plant by nearly BGN 600 million. At the end of 2020, overdue loans to BEH amounted to BGN 15.7 million.

PFC Beroe and TPP "Maritsa East 2 (9 and 10)

"We remind you that BEH is also an indirect owner of the football club "Beroe - Stara Zagora". TPP Maritsa East 2 became the owner of 100% of the club's shares back in 2011. 88 people currently work at PFC Beroe. A priority in the activity of the club is the long-term establishment of the representative team in the leading positions of A football group. The capital of the company is nearly BGN 5.5 million. The executive director and chairman of the Board of Directors is Ilko Rusev, who took office shortly after the headquarters acquired the club's shares. The football club was at a loss of BGN 5.4 million at the end of 2019. After compensation with retained earnings, the loss was reduced to BGN 5.1 million.

The state power plant is also the owner of another company - TPP Maritsa East 2 (9 and 10). The subsidiary was established in 2012 with the idea to start the construction of new power units with numbers 9 and 10. At the moment, such an undertaking already seems inadequate, so the plant has completed a procedure for merging the subsidiary with the main TPP "Maritsa East 2" .