An alarming red light has been glowing for long time in Bulgaria’s energy sector but minister Dragomir Stoynev either does not notice it or sees it in different colours through the rose-colored glasses he has obviously been wearing lately. Last week, as it became clear that the country is already a subject of a special European procedure for its statutory amendments regarding South Stream pipeline, and because of the actions of the State Commission for Energy and Water Regulation in the revocation of licenses of electricity distribution companies. This is the so-called EU Pilot – a project operational since April 2008 which aims to provide faster and more complete answers to questions and solutions to problems related to the application of Community law.
„There is no way to avoid the exact phrasing – this is not good news for Bulgaria. The procedure is an open gate for sanctions to the country because of the unwillingness of the ruling socialist party, BSP, and its coalition partner, the ethnic Turkish representative, MRF, to solve problems in energy. Bulgarians will pay thousands of euros per day if the fine is imposed,“ said the leader of the Bulgaria for Citizens Movement, Meglena Kuneva.
Official letter for the start of EU Pilot was sent to the Bulgarian authorities in the middle of April, but they apparently chose not to inform the public about it. And after its disclosure minister Stoynev and his department tried to downplay the situation.
„Such procedures have come in dozens. There is nothing to worry. This complex, which Bulgarian citizens and local rightist politicians have regarding the European Commission must be uprooted. We must be full members of the European Union and defend our national interests, and Brussels has to respect them,“ said Stoynev. And again accused former Prime Minister and GERB leader Boyko Borissov who went to lodge complain to the European Commission because of the South Stream. The energy minister did not miss to mention the three distribution companies – CEZ, EVN and Pro Energy that also filed complaints in Brussels.
Deputy minister, Ivan Ayolov, even invited GERB MPs to a meeting to provide them with accurate and reliable information on the EU Pilot project. The press office of the Ministry of Economy did indicate that Bulgaria has so far received a total of 20 such inquiries in the field of energy. „Two of them have gone to penal procedures during the government of Boyko Borisov – the first being related to the final consumption of electricity from renewable sources, and other – to waste from the mining industry. The present government has taken adequate measures to make up for the delay and align Bulgarian legislation compliance with the EU one – through proposed amendments to the Mineral Resources and Energy Efficiency Act,“ noted the ministry’s press center.
Whatever may be said, however, it is now more than clear that there is a problem with the prepared legislative amendments giving the number of preferences to the prospective South Stream pipeline. As the BANKER reported in its previous issue, the Reformist Block party gave journalists a letter from the Bulgarian Energy Holding (BEH) dated 13 December 2013 addressed to the Minister of Economy and Energy Dragomir Stoynev. It recommends considering changes to the Energy Act made by BEH itself and „South Stream Transport (in which the majority shareholder is the Russian company Gazprom). The wording of the legislative changes proposed by South Stream Transport is very similar to what was submitted to Parliament as a text by the leftist MP Yavor Kuyumdjiev and Tasko Ermenkov. Separately was given also the reasoning for a draft amendment to the Energy Act, which is almost identical to the one proposed by the aforementioned MPs from the leftist „Coalition for Bulgaria“. However Dragomir Stoynev denies any Russian connection to the Bulgarian legislation already adopted on first reading by the Parliament. In his words, the texts from Moscow differ from those submitted by the two leftist MPs. Until recently, Energy Minister denied even the existence of a letter with suggestions for legislative changes by South Stream Transport, but now defines it as regular correspondence practice.
The most normal thing to do, however, would be if both opposition and the government sit down and discuss what adjustments they can make to the Energy Act, since the procedure for EU Pilot is already ticking. According to official statistics of the EU, the time required by Member States to offer their answers is an average of 67 days. That is, if one must meet this deadline, the country would need to make legislative changes to satisfy the European Commission by mid-June.
„Next week or when the EU experts can make it, we will be expecting them, I have already invited them. I will invite also the MPs and of course the MPs from the opposition will be invited. It is normal for this debate to be conducted in parliament to see their suggestions for the second reading of the bill, which relates to the filling of a loophole in the Bulgarian legislation, as there is so far no existing marine pipeline in the country,“ said Minister Stoynev. On these proposals will depend whether the demands of Brussels will be satisfied or the country will enter a new penal procedure.
In any case, the outcome is soon to be seen.
The BANKER
