Bulgaria's planned energy holding would generate regulatory framework ideas and help create a more stable investment environment and business climate in the energy sector, according to Jan Skarvil, consulting director at Deloitte, as quoted by Dnevnik daily.

Bulgaria's Ministry of Economy and Energy commissioned Deloitte to draft an analysis on the viability of the mega-structure, which would consolidate the assets of five state-run energy companies.

The five companies are the country's largest thermal power plant Maritsa Iztok II, Kozlodui nuclear power plant, Maritsa Iztok coal mines, gas company Bulgargaz Holding and power grid operator National Electric Company (NEC). Additionally, through NEC and Bulgargaz, it would hold majority stakes in the planned nuclear power plant at Belene and several big pipeline projects, including South Stream and Bourgas-Alexandroupolis.

The country's regulatory framework was counterproductive in its present form, because regulations were changed all too frequently and did encourage sufficient return on investments. Existing market regulations, including the Energy Act and ordinances, did not allow companies to plan their investments.

Skarvil cited a ranking created by rating Moody's, which put Bulgaria alongside Romania, India, Brazil and South Africa in the fourth from bottom category in terms of favourable impact of the regulatory framework.

Deloitte also noted that most decisions of the energy and water watchdog were politically influenced and there was no long-term strategy for development of the sector.