Regrets in the first half of the year and increased prices in the second seem to be the stand-out memories of the sphere of energy in 2008.

Everyone knew that the closing down of units 3 and 4 of Kozloduy nuclear power plant had been stipulated for Bulgaria’s accession to the European Union. But knowing and doing, or knowing and doing wilfully, are two separate issues.

The reactors were shut down at midnight on December 31 2006 to January 1 2007, but not with cheers of joy and complacency. It had been expected that their removal would seriously hurt Bulgaria’s energy production and energy export levels, and while this might be true, it is a give and take world – Bulgaria gives up two nuclear power generation units and gets EU membership. Yet, even in March, there was still wrangling over trying to get the Kozloduy reactors re-opened. But, in his role as head of the European Commission representation in Bulgaria, Michael Humphreys reaffirmed that the answer was no, and the units remained closed.

In October, Konstantin Shou­shoulov, head of the State Energy and Water Regulation Commission (SEWRC), cited the closure as one of the reasons for the constantly increasing prices of electricity tariffs in 2007.

Well, then there are the oil pipelines – the Bourgas-Alexandroupolis one that is to transfer Russian oil and the Nabucco one that is to transfer natural gas from Iran and Azerbaijan to Central Europe. Or, there was the Nabucco oil pipeline: in early May, execution of the project was nipped in the bud because one of the participants, Hungary, decided to take part in an alternative energy project. Though it is not yet conclusively dead, with mentions of Nabucco popping up here and there.

Shortly before this, and completely unrelated, was the dismissal of Nasko Mihov, executive manager of Sofia’s central heating provider Toplofikatsia. He had replaced Valentin Dimitrov, who was being held in police custody while under investigation for alleged money laundering. Mihov himself had been appointed after much moaning and gnashing of teeth from the Sofia city councillors that eventually barely approved him in mid-January 2007.

On May 20, Sofia City Court released Dimitrov on 20 000 leva bail. He had spent 10 months in prison. The court said that it lacked enough evidence that Dimitrov had committed money laundering and the other accusations were insufficient for authorities to keep him in prison.

Local businessman Krasimir Georgiev was drawn into the trial, being accused of the laundering of 500 000 euro drained from Toplofikatsia. Georgiev was considered close to then economy and energy minister Roumen Ovcharov.

It’s funny how it all comes together, because Ovcharov was also allegedly involved in a corruption controversy. Prime Minister Sergei Stanishev made Ovcharov take 10 days unpaid leave in mid-May 2007 while things were evaluated. Those 10 days of leave eventually turned into a resignation from post on June 2, because Ovcharov was just too linked to the scandal, despite prosecutors having failed to find any proof that he was guilty. Petar Dimitrov thus became the new Economy and Energy Minister on July 13.

It turns that everything revolves around money – the closing down and opening up and renovation of power-generating units, corruption and consumer comfort. It is only figures that when it is cold outside, people like to be warm inside. Or maybe it’s just all the plasma televisions and new computers that people are buying.

Such has since become more expensive. From January 1 to 29, the price of natural gas increased by nearly four per cent. In mid-April, German E.ON, the majority owner of electricity distribution companies in Varna and Gorna Oryahovitsa, proposed a 5.6 per cent increase of electricity prices for households; a price increase of 12.8 per cent was set for large companies. CEZ, the Czech owner of the electricity network in Sofia, also announced its plan for an 8.9 per cent price increase for household customers and 15.3 per cent for big companies.

Then later, in June, Toplofikatsia proposed a four per cent price increase in the capital, with consumer heating prices reaching 62.67 leva a megawatt hour, as compared with the previous price of 60.25 leva a megawatt hour.

SEWRC head Shoushoulov countered this with a 0.35 per cent increase at the end of the month.

Still, electricity prices increased as of July 1 to 0.157 leva a kilowatt hour daily tariff and 0.100 leva a kilowatt hour during the night, from 0.146 leva a kilowatt hour during the day and 0.093 leva during the night, VAT included.

Then, as of August 1, the SEWRC put into effect new price ceilings for production and distribution of steam heating energy. This was a happy change, for there was an overall reduction in the average price of 0.34 per cent, varying by region.

Sadly, mud was thrown on what little joy this engendered, for in September Bulgarian natural gas provider Bulgargaz suggested that the SEWRC increase the price of natural gas for the fourth quarter of 2007 to 353.98 leva without VAT for 1000 cubic metres, a 10.78 per cent increase. The reasoning behind this? The company said that gas prices in Bulgaria would continue to be almost 30 per cent lower than the average price in the European Union. (They did not mention the gap in salaries.)

Thus, on October 1, SEWRC set the price for natural gas for the last quarter of 2007 at 348.96 leva without taxes for 1000 cubic metres, a 9.21 per cent increase.

Otherwise in the Bulgarian world of energy, and the energetic world of Bulgaria, it was waffling and tears over Kozloduy, upset (or cheers) about the approved construction of Belene nuclear power plant (according to the European Commission on December 7), the opening of an eco-university in Sofia and continued construction of the pipeline to free Bulgaria once and for all from Russian dependence.