The accumulated loss from Mini Maritsa East is growing, a short-term loan from BEH and a commercial bank is supporting the company for now

The accumulated loss from "Mini Maritsa-East" appears to be in the order of BGN 237 million in 2024, compared to BGN 137.4 million a year earlier. This became clear from the words of the Minister of Energy, Vladimir Malinov, during a hearing by the deputies of the National Assembly about the financial condition of the company and its future.

Among the factors for the worsening financial condition of the company is the suspension of coal deliveries to the "Contour Global Maritsa East 3" TPP. After February, coal is supplied to only three plants in the region. This is also the reason for updating the plans for coal production this year from the initially set 17.4 million tons to 11.6 million. Minister Malinov also explained that "Mini Maritsa-East" has stopped new openings.

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The MPs obliged the Council of Ministers to allocate BGN 250 million to "Mini Maritsa-East" over the next 4 years

The lack of revenue leads to a situation where mines can no longer fulfill their contractual obligations to suppliers. Accumulated liabilities reach BGN 57.6 million, and according to already concluded contracts they exceed BGN 44 million, of which BGN 3.1 million is an unpaid concession fee to the Ministry of Energy. The company's receivables are insufficient, according to the minister's report submitted to the people's representatives.

As a result of the worsening financial situation of the state-owned company, the management has frozen new appointments, and the employees with the right to retire are being released, according to the signed Collective Labor Agreement. The two-shift mode of operation has also been changed, as at times of peak electricity prices, the mines stop working. Repair actions are now carried out by company employees, not by external companies. Fuel costs have also been reduced.

At the same time, Minister Malinov assured that "as of today, "Mini Maritsa-East" has no unpaid obligations to the staff and to the budget, except for the concession fee to the Ministry".

He informed that with his decision a short-term measure was taken to secure BGN 150 million for "Mini Maritsa-East". Of these, BGN 100 million is a credit line from BEH and BGN 50 million is a commercial loan (later, in response to a question about who the bank was, the minister said he thought it was DSK), on which the energy holding is a co-debtor. The instructions are that every expenditure from the mines under this loan be agreed with BEH, the minister said.

In his answer to the deputies, Minister Malinov informed that since May 10 he requested additional information on the request from the Ministry of Energy for the provision of BGN 250 million to increase the capital of the company. We are now waiting for the DG Competition of the EC to rule on this request and whether it complies with the rules for granting state aid. The minister informed that the response time is from 6 to 8 months. He specified that, as a result of his request, a meeting was held with EC representatives on May 31, and on July 9, a working group was created and a legal consultant was hired to protect the right to grant these funds.

Later, the Minister of Energy, in response to the MP from PP-DB Radoslav Ribarski, reminded that the deadline for a ruling by the EC runs from the date of receipt of the request.

By the way, the provision of the funds was based on the decision of the previous National Assembly in April. BSP deputy Dragomir Stoynev also reminded of this. "This measure was adopted because the miners were here," he recalled, including the actions to delay the liberalization of the market. According to him, what is happening is because there is no state strategy for the coal industry.

"Mr. Stoynev, it won't be easy. Our decision is to prove that this one billion (BGN) is admissible," said Malinov for his part. According to him, the question is to prove what the funds are for - for reclamation or cross financing, and if it is for the second, the EC will not allow this. Therefore, work is being done to prove that these BGN 250 million are necessary for reclamation, it became clear from the explanation of the energy minister.

In response to a question from PP-DB MP Radoslav Ribarski, who meanwhile expressed a skeptical attitude towards the EC's decision on state aid, the Minister of Energy stated openly that until the EC's ruling, "Mini Maritsa-East" will need the provision of an additional financial resource, in addition to the one mentioned above in the amount of BGN 150 million.

Vladimir Malinov assured that BEH has the necessary funds. Before that, the minister commented that the future of the mines is connected to the whole complex.