Milen Hristov is the director of Eastern European Electric Company (EEEC) B.V., part of Eurohold Bulgaria AD, and owner of one of the leading electricity groups in Bulgaria - Elektrohold. 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 does Electrohold make to improve the electricity supply and the quality of the service?
Electrohold invests about BGN 100 million per year 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 ongoing large-scale projects of ERM West, 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 city's electricity security and nearly BGN 4 million will be invested in it. This will reduce the risk of accidents occurring, and their elimination will take place in a much shorter time frame.
To whom did you entrust the big investment project in Sofia?
The replacement of the cable has been assigned to the Electrohold IPS, which I lead, 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 “inhouse“, with which we manage to integrate all activities, from delivery to installation, related to the construction and modernization of the network and respectively to optimize costs, which benefits all our customers and partners.
Optimization of our costs will not reduce the funds we invest in the network, but on the contrary - will concentrate more resources in specific activities related to its improvement. Colloquially speaking, instead of spending money on tiles and curbs, we will be able to replace more cables, build new substations, substations, etc.
At Elektrohold IPS, in less than three years we managed to recruit over 200 specialists, 120 of whom are directly involved in repair activities of energy facilities. Our ambition is for Electrohold IPS to become one of the most competitive companies on the market in its industry and to be among the leaders in construction and repair activities in the energy sector. In this way, we will prove that in-house activity 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 the citizens in terms of electricity supply. ERM Zapad and the subcontractor Electrohold IPS have taken all necessary measures to minimize inconvenience. 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 for carrying out the key repair is selected so that it works during the active holiday period. We have also coordinated all activities with Sofia Municipality, Sofia Water, Toplofikatsia-Sofia and other utility service providers.
As you mentioned coordination of activities, a round table was recently organized between representatives of the electricity distribution companies and the National Association of Municipalities in the Republic of Bulgaria (NSORB), where the possibilities for cooperation 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 the other colleagues in the sector and the mayors responded. This is a step in the right direction, as such a forum has 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 constantly doing “repair of the repair”, as today we excavate, and tomorrow some other utility company 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 restoring a road surface.
Our goal is to optimize our investment program so that we invest much more in network development, and not become “roaders”. 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 and plumbing 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 of all companies and the discomfort of citizens from 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 the municipal budget and those of the utility companies to create “matrices”, according to to be awarded together with the repairs. A practice that happened decades ago in Bulgaria, and which is inevitable in every big city in the world. In this regard, we are also preparing a memorandum of cooperation with the NSORB, which we will sign in October. We have already discussed the framework of this memorandum and there is agreement between all concerned.
In just three months, we managed to organize several meetings to build a concrete framework for actions, 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, results are achieved quickly.
Are there other investment projects that the company is currently carrying out?
We work on numerous projects in implementation of the investment program of ERM Zapad - we recycle hundreds of electricity meter panels in connection with the installation of remotely operated electricity meters, which are the basis for the construction of a digital network.
The focus of our work is also small photovoltaic power plants (PEC). Since last year, one of the companies in the group – Elektrohold Sales, started to offer the construction of small power plants for business and residential customers. The service was created to meet the growing demand in the conditions 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 up to 15 kilowatts, including the connection of batteries. One of our main advantages is that we perform it “turnkey”, so the client saves time and administrative activities, communication with municipalities and electricity distribution companies.
In addition, the construction and connection of a large 200 kW plant is currently being completed. Several more are in the process of being designed and receiving permits for commissioning.