Citigroup applies for a licence for electricity trading in Bulgaria

The U.S. company Citigroup wants to start electricity trading in Bulgaria, it became clear from a report of the State Energy and Water Regulatory Commission (SEWRC), to be discussed at a meeting of the regulator tomorrow. Its subsidiary - Citigroup Global Markets - has applied for a 35-year license (the maximum license period) for electricity trading. This will allow the new player on the free market to gain experience, and plan its activities and volumes of energy to be traded in the long term. As a result, the competitive environment will improve and there will be more benefits for both the other market participants and the Bulgarian consumers, states Citigroup. The company is registered in London and has a capital of $1.9 bn.

SEWRC’s report says that the company has 260,000 employees in more than 100 countries. Citigroup Global Markets has over 45 years of experience on European energy markets. It trades electricity, greenhouse gas quotas, coal, agricultural goods and investment products. Over the last two years, the company signed agreements for electricity trading with 250 new clients.

The company has already submitted the required guarantees to SEWRC and has opened a current account with at least BGN 150,000 in the Sofia branch of Citibank. The company will sell electricity in Bulgaria and in the region from its office in London. Four experts experienced in working with the energy markets in the U.S. and Europe will be sent to Bulgaria.

The company has been profitable over the last two years and its financial state is good, says SEWRC. Citigroup Global Markets plans to gradually increase its sales of electricity in Bulgaria until 2016, as well as its profit.

Citigroup is yet another company that wants to sell electricity in our country and in the region. Industry giants including E. ON, GDF Suez, Gazprom Marketing & Trading, CEZ, EVN, ABB, NEK and a number of regional companies are already operating on the domestic market. The active traders on the free market are about 35 at present. In 2012, all users of medium voltage electricity are expected to go out of the regulated market.

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