Bulgarian energy holding issues with EU Commission

6. December 2012. / SEE Energy News

Bulgarian Energy Holding is under the scrutiny of the European Commission, opening formal proceedings to investigate whether Bulgarian Energy Holding may be abusing its dominant market position in the home wholesale electricity market, hindering the competition in the country and at neighbouring states, breaching the antitrust rules.’An opening of proceedings does not prejudge the outcome of the investigation; it only means that the Commission will treat the case as a matter of priority’, – says the official statement.

The Commission is investigating certain provisions in electricity supply agreements entered into by subsidiaries of Bulgarian Energy Holding, restrict their trading partners’ freedom to deliver.According to these provisions, electricity supplied by BEH may be resold only within Bulgaria and not exported, that constitutes the territorial restrictions and have the effect of distorting the allocation of electricity within the Single Market and partitioning electricity markets along national lines, hindering competition and undermining of the EU electricity market integration.The EU prohibits the abuse of a dominant market position which may affect trade between Member States.

The implementation of this provision is defined in the Antitrust Regulation, which can be applied by the EU Commission and by the national competition authorities.The Commission has informed Bulgarian Energy Holding EAD and the competition authority about the opining of the procedure.There is no legal deadline to complete inquirers into anti-competitive conduct. The duration of an antitrust investigation depends on a number of factors, including the complexity of the case, the extent to which the undertaking concerned cooperates with the Commission and the exercise of the rights of defence.

Source EUreporter

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