The General Manager of AES Bulgaria Olivier Marquette – AES is part of the solution to the difficulties in the energy sector

March 12, 2015

We will reach an agreement with the government and NEK, said the executive director of the company

AES is part of the solution to the problems in the energy sector. We are in active dialogue with NEK and the government, and I believe that we will reach an agreement for the renegotiation of the PPA by the end of March. This was declared by the executive director of AES Bulgaria Olivier Marquette in front of journalists attending a round table in Stara Zagora.

The solution to the problems in the sector requires a number of measures. We will fulfill our part of them, but the share of AES Galabovo, part of AES Bulgaria, in the total amount of electricity purchased by NEK is very small. That is why there is a need for other measures to be implemented, and the package announced by the government in the field of energy is very good and should be carried out.

I’d like to underline that the return of AES is much lower than the 17% quoted by different sourced, said Marquette. He explained that this percentage was agreed during the initial negotiations before the AES entry into Bulgaria. Consequently the agreement has been amended many times, including the revision of the disposable capacity price, he explained.

It is possible for AES to go on the free market of electricity, provided that specific mechanisms are implemented that address the variability of the revenue, allow us to consistently meet our commitments to lenders and other third parties, and to cover the 1,3 billion euro investment.

Olivier Marquette said that it is not realistic to expect that the negotiations between NEK and the government could lead to a 30% reduction in the purchase price. However, I am confident that we will find a solution that satisfies both parties.