Brussels, 03/12/2012 (Agence Europe) - On Monday 3 December, the European Commission opened formal proceedings to investigate whether Bulgarian Energy Holding may be abusing its dominant market position in the wholesale electricity market in Bulgaria. The Commission has concerns that Bulgarian Energy Holding might be hindering competition on wholesale electricity markets in Bulgaria and neighbouring member states through territorial restrictions. Certain provisions in electricity supply agreements entered into by subsidiaries of Bulgarian Energy Holding may restrict their trading partners' freedom to deliver electricity purchased from Bulgarian Energy Holding by prescribing where the electricity has to be delivered. According to these provisions, electricity supplied by BEH may for example be resold only within Bulgaria and not exported. These contractual provisions may constitute territorial restrictions and have the effect of distorting the allocation of electricity within the single market and partitioning electricity markets along national lines. Such a practice would both hinder competition and undermine the integration of EU electricity markets and if proven, the company would be fined, explains the Commission, noting that the opening of proceedings does not prejudge the outcome of the investigation. (FG/transl.fl).