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From Bulgaria

22.05.2013 16:07

Regulator Dismissed Possibility for Electricity Grid Nationalisation

The possible cancellation of CEZ’s permit surfaced for the first time in February 2013 after an inspection led to indiciment of CEZ for numerous breaches of law, notably the regulations for public procurement

AUTHOR: publics.bg

© Jaime Perez@flickr.com

“Even if we revoke the license of CEZ, the company would still have ownership of the distribution grid without being obliged to invest in it. As far as I know, CEZ have insured their grid for BGN 5 bn (about EUR 2.5 bn), while the grid is estimated at BGN 700 m.”, Evgenia Haritonova, chief of the state energy and water regulator (SEWRC) during a parliamentary session.

Prominent nationalization supporting party Ataka raised the question of revoking the license of CEZ for Bulgaria and the state getting full ownership over the grid and electricity distribution. Haritonova explained that paying BGN 700 m would be impossible for the state and, in case a revocation takes place, the most reasonable option would be to secure another buyer for the electric utility. Consequently, Haritonova was accused by Ataka MPs of lobbying for foreign monopolies.

During today’s parliamentary session another power utility, managed by Austria’s EVN, also came into the focus of discussions. Allegedly, EVN refused to apply the methodology of SEWRC for covering the higher price of renewables. EVN have stated on numerous times that the current regulations create place for deficits which are covered systematically by electric utilities.