EC probes Bulgarian Energy Holding

The European Commission (EC) has sent a statement of objection to the Bulgarian Energy Holding concerning the suspected abuse of the company’s dominant position on the Bulgarian wholesale electricity market, the Bulgarian Newswire, Novinite, reported Aug. 12.

“The EC has informed Bulgarian Energy Holding of its preliminary view that territorial restrictions on resale contained in the company’s electricity supply contracts with traders on the non-regulated Bulgarian wholesale electricity market may breach EU antitrust rules,” the local media reported. “The statement of objections does not prejudge the final outcome of the EC investigation into the matter.”

According to the EC, the majority of electricity supply contracts between Bulgarian Energy Holding and electricity traders stipulate that electricity supplied by the Bulgarian Energy Holding may be either resold within Bulgaria or be exported only. The contracts also include control and sanctioning mechanisms, which allow Bulgarian Energy Holding monitoring and punishing customers, who fail to comply with the territorial restrictions.

In the statement of objections sent to the Bulgarian Energy Holding, the EC points out that these territorial restrictions constitute an abuse of Bulgarian Energy Holding’s dominant market position, which does not comply with the EU regulations. The statement is a formal step in the EC investigation into suspected violations of the EU antitrust rules. If the EC concludes that there is sufficient evidence of an infringement, it can impose a fine on Bulgarian Energy Holding of up to 10 percent of the company’s annual worldwide turnover.

The EC opened formal investigation to verify whether Bulgarian Energy Holding may be abusing its dominant market position on the Bulgarian wholesale electricity market on Nov. 27, 2012.

In a separate investigation started in July 2013 the EC is trying to establish whether Bulgarian Energy Holding, its gas supply subsidiary Bulgargaz and its gas infrastructure subsidiary Bulgartransgaz might be hindering competition from accessing key gas infrastructures in Bulgaria, which again breaches the EU antitrust regulations.

Photo courtesy of Euseson.