Brussels, 22/08/2014 (Agence Europe) - In mid-August, the European Commission sent a statement of objections to Bulgarian Energy Holding (BEH), the incumbent state-owned vertically-integrated energy company in Bulgaria, about suspected abuse of its dominant position on the Bulgarian wholesale electricity market.
The Commission says that most electricity supply contracts entered into between BEH and traders stipulate that electricity supplied by BEH may only be resold within Bulgaria or may only be exported. The contracts also contain control and sanctioning mechanisms which allow BEH to monitor and punish customers which fail to comply with the territorial restrictions. The Commission's provisional finding is that these territorial restrictions constitute an abuse of BEH's dominant market position, which is prohibited under EU rules.
In a separate investigation that was launched in July 2013, the Commission is investigating whether Bulgarian Energy Holding (BEH), its gas supply subsidiary Bulgargaz and its gas infrastructure subsidiary Bulgartransgaz might be hindering competitors from accessing key gas infrastructures in Bulgaria, in breach of EU antitrust rules (see EUROPE 10882).
The Commission will take the final decision once the parties have had the opportunity to argue the case in their own defence. It may decide to outlaw the behaviour in question and fine the company up to 10% of global annual turnover. (MB)