The significant decrease in electricity export since the beginning of the year was the main reason for the worsened financial condition of the National Electric Company (NEC), Economy and Energy Minister Roumen Ovcharov said.

MP Ivan Ivanov said that the debts of the company already reached 100 million leva.

Electricity export decreased after Bulgaria had to shut down units three and four of Kozloduy nuclear power plant as a pre-condition for its EU entry.

In 2006, NEC’s revenue before taxation reached 59.5 million leva. The company carried out an investment programme worth 273.7 million leva. NEC was financially stable.

Revenue from electricity export enabled NEC sell electricity to energy distribution companies at lower prices.

Since the beginning of 2007 conditions changed sharply, Ovcharov said. The situation will change further after July 1 2007, when the national energy market will be liberalised.

In the previous year, electricity export reached 24 per cent of the national energy production. It has now fallen to seven per cent.

Currently the amount of energy produced using alternative energy sources has increased.