• Monday, 23 December 2024

ERC revokes BEG’s license for production of heating energy

ERC revokes BEG’s license for production of heating energy
Skopje, 20 June 2022 (MIA) – The Energy Regulatory Commission (ERC) has decided to revoke the license for carrying out energy activity – production of heating energy of the company Balkan Energy Group – BEG. Today’s decision, according to ERC President Marko Bislimoski, comes after a preparatory session regarding BEG’s request to terminate the license for performing the energy activity of regulated heating energy production. In addition, Bislimoski said, BEG submitted on Friday a request for termination of licenses for distribution and supply of heat, on which appropriate decisions by the ERC will follow. “In line with the Law on Energy, we informed the Government on today’s decision, which is now to conduct a procedure to select a performer of public energy activity – production of heating energy. Once the selection is made, the ERC will issue an appropriate license. Until the completion of the procedure, BEG is legally obliged to carry out the public activity – production of heating energy, after which the obligation will be taken over by the company that will be selected in the procedure conducted by the Government, Bislimoski told a press conference on Monday. He noted that as key reasons in the request for termination of the license BEG has cited credit insolvency, disturbed liquidity, legal uncertainty in operation due to a number of lawsuits initiated against the company, challenging the legality of the license for regulated heat production by legal entities and institutions, as well as challenging the validity by the fixed asset lease agreement. “I expect the procedure to be completed on time and a new contractor to be elected. If there is gas, there will be no issues in supplying Skopje with heat,” said Bislimoski, adding that gas supply depends on global policies. According to him, the country has opportunity to procure other gas besides Russian through the interconnector with Bulgaria, because Bulgaria is connected to Greece, and the energy producer is obliged to have alternative fuel for 15-day uninterrupted heat supply, in this case crude oil. In case Russia interrupts the gas supply to the country and no alternative way is found, transformers in some Skopje municipalities are not dimensioned to withstand greater load if citizens switch to electricity heating.