"Repairing the repairs" in Bulgaria will only end with coordinated action

Milen Hristov is the director of Eastern European Electric Company (EEEC) BV, part of Eurohold Bulgaria AD, and owner of one of the leading electrical energy groups in Bulgaria - Electrohold. He is the manager of the subsidiary company Electrohold IPS EOOD, which specializes in engineering, investment projects, construction and assembly activities and purchase of goods and materials.

Mr. Hristov, what investments has Electrohold made to improve the electricity supply and the quality of this service?

Electrohold invests about 50 million euros annually in the modernization and development of the electricity distribution network in Western Bulgaria, with which we are committed to the constant improvement of the electricity supply and the quality of services. For this purpose, in addition to the development of the physical electricity distribution network, we also focus on its digitization and automation.

One of the current large-scale projects of ERM Zapad, which we launched in mid-June, is the replacement of the 110 kV Totleben cable, which is part of Sofia's critical infrastructure. This cable provides electricity to 150,000 households and business customers from 12 metropolitan districts, including state institutions, hospitals, industrial and office buildings, the tram and trolleybus network of urban transport, etc. This project is of key importance for the electricity security of the city and nearly 2 million euros will be invested in it. This will reduce the risk of accidents occurring, plus the repair time will take place in much shorter terms.

Who has been entrusted with this big investment project in Sofia?

The replacement of the cable has been assigned to Electrohold IPS, which I manage, which is part of the Electrohold group, and whose main activity is preparing investment projects and carrying out construction and installation works. In recent years, we have been working hard to prove that there is also a good example in the so-called "in-house" activities, with which we manage to integrate all activities, from delivery to installation, related to the construction and modernization of the network and respectively optimize costs, which benefits all our customers and partners.

Optimizing our costs will not reduce the funds we put into investments in the network. On the contrary – it will concentrate more resources on specific activities related to its improvement. Colloquially speaking, instead of spending money on street tiles and curbs, we will be able to replace more cables and build new electrical towers, substations, etc.

At Electrohold IPS, in less than three years we’ve managed to recruit over 200 specialists, 120 of whom are directly involved in repair work at energy facilities. Our ambition is to become one of the most competitive companies in our market and to be among the leaders in construction and repair activities in the energy sector. In this way, we will prove that in-house activities can bring positive development for business and society, and its main contribution is not only cost savings but also time optimization. This means we provide faster access to power for our customers, rather than waiting months for subcontracting procedures, appeals, etc., which slow down service delivery to the end user.

Should we expect power outages during the repair work associated with this project?

According to the plan, the project should be finalized by the end of September 2024, but this will not affect in any way the comfort of citizens in terms of electricity supply. ERM Zapad and the subcontractor Electrohold IPS have taken all necessary measures to minimize inconveniences. For this purpose, the track is divided into parts and the repair will take place in several stages. We do not expect any power interruptions during the repair work. The moment of carrying out the key repair is selected so that it works during the holiday period. We have also coordinated all activities with Sofia Municipality, Sofiyska Voda, Toplofikacia-Sofia and other utility service providers.

Speaking of coordination of activities, a round table event was recently organized between representatives of the electricity distribution companies and the National Association of Municipalities in the Republic of Bulgaria (NAMRB), where cooperation possibilities were discussed. What is the purpose of this initiative and what will its effect be for the citizens?

This round table was initiated by Electrohold and I am glad that our peer companies in the sector and the mayors responded to it. This is a step in the right direction, as such a forum had not been organized since the 1990s. Cooperation with municipalities and institutions is key because only through common actions we can quickly and qualitatively meet the needs of customers and optimize in the most expedient way the costs that the energy regulator approves. When there is no such agreement, it leads to a situation of constant "repairing the repairs", for example, we excavate a street today for our activities, and tomorrow some other utility company then does the same. This leads to inconveniences for citizens and a sharp increase in costs for activities that are not typical for us. One such example is the cost of excavating and resurfacing a road surface.

Our goal is to optimize our investment program in such a way that we invest much more in electrical grid development, instead of turning into road builders. That is exactly why we are looking for options during repairs to coordinate the activities with other providers of communal services such as Sofia water supply companies, district heating companies, gas distribution companies, telecom operators, etc. In this way, projects will be implemented in a timely manner, which will reduce both the costs to all companies and the discomfort felt by citizens due to constant repairs. For this purpose, it is necessary for the municipalities to notify all parties of each infrastructure object so that the companies have enough time to plan their activities.

The ideal solution would be to create a common GIS system (the construction of which is already being worked on in the Metropolitan Municipality) and, when discussing and agreeing on the municipal budget and those of the utility companies, to create "matrices" based on which the repairs will be assigned together. This was a common practice decades ago in Bulgaria and is still commonly applied in every big city in the world. In this regard, we are also preparing a memorandum of cooperation with the NAMRB, which we will sign in October. We have already discussed the framework of this memorandum and there is agreement among all stakeholders.

In just three months, we managed to organize several meetings to build a concrete action framework, the result of which I believe will be implemented and visible by the end of the year. We have proven that when there is a desire for communication and constructive dialogue between the parties, the results are achieved quickly.

Are there other investment projects that the company is currently carrying out?

We are working on numerous projects as we implement the investment program of ERM Zapad - we recycle hundreds of electricity meter panels in connection with the installation of remotely operated electricity meters, which form the basis for the creation of a digital network.

Small photovoltaic power plants are also a focus of our work. Since last year, one of the companies in our group - Electrohold Sales - has started offering the construction of small power plants for business and household customers. The service was created to meet the growing demand in the context of the green transition and the upcoming full liberalization of the market.

It is intended for users who wish to build a photovoltaic installation for their own consumption of up to 15 kilowatts, and that includes connection to battery storage. One of our main advantages is that we deliver this as part of a turnkey contract, so the client saves time by avoiding all the administrative activities and communication with municipalities and electricity distribution companies.

In addition, the construction and connection of a large 200 kW plant is currently being completed. A few more are in the process of being designed before getting commissioning permits.

Translated by Tzvetozar Vincent Iolov