News

From Bulgaria Bookmark and Share

30.07.2014 14:03
Competition Authority Fines State-Owned Incumbent Gas Supplier Bulgargaz with 12 Million EUR
The main reason for the largest fine ever ruled by the CPC is the contents of the contracts, offered by Bulgargaz to its clients, according to which they should apply for annual quantities, which could not be changed later on
AUTHOR: publics.bg


  • © Bulgartransgaz

The Bulgarian Commission for Protection of Competition (CPC) published its decision from July 29, 2014, according to which the state-owned incumbent gas supplier Bulgargas will be fined with 23 377 600 BGN (about 12 million EUR) for a breach of the competition law in Bulgaria through the implementation of bad commercial practices.

The long procedure lasted about 4 years after initially in 2010 end suppliers of natural gas in Bulgaria from the group of the Overgas Inc. holding (Sofiagas, Overgas North, Overgas West, Overgas South, and Overgas East) pleaded against the gas incumbent. Later on, the CPC joined to the pledge other suppliers and large consumers of natural gas, who buy at wholesale regulated prices from Bulgargaz: Primagaz, Agropolychim, CNG Maritsa, Sevlievogas, Consortium Varna Pro Energy, and Kostinbrodgas.

The main reason for the largest fine ever ruled by the CPC is the contents of the contracts, offered by Bulgargaz to its clients, according to which they should apply for annual quantities, which could not be changed later on. Also, the daily consumption is defined by average values, in stead of offering flexibility schemes. The gas incumbent also proposed changes to the contracts in the latest possible moment, thus depriving the companies from other options. According to the CPC, the reason is that the state-owned company wanted to keep its market share unchanged.

The record fine is decided in a moment, when all state-owned energy companies in Bulgaria have financial difficulties. According to the decision, it could be objected in a 14-day period.
 


TAGS: Bulgargaz | Competition | incumbent | natural gas | Overgas | fine 


All news from Bulgaria

No published comments
Login to comment


Interview

20.03.2022  Teodor Bobochikov, Managing Partner, V-Ridium
Energy Transformation – Trends and drivers
Full text

Events

No records in this category!

Poll

What kind of transport do you use to get to work?











 



We use cookies to ensure we give you the best browsing experience on our website. Find out more on how we use cookies and how you can change your settings.

Cookies

What are cookies ?

A cookie is a small text file that a website saves on your computer or mobile device when you visit the site. Cookies are widely used in order to make websites work, or work more efficiently, as well as to provide information to the owners of the site.

How do we use cookies?

Website use Google Analytics, a web analytics service provided by Google, Inc. ("Google") to help analyse the use of this website. For this purpose, Google Analytics uses"cookies", which are text files placed on your computer.

The information generated by the cookies about your use of this website - standard internet log information (including your IP address) and visitor behaviour information in an anonymous form - will be transmitted to and stored by Google including on servers in the United States. Google will anonymize the information sent by removing the last octet of your IP address prior to its storage.

According to Google Analytics terms of service, Google will use this information for the purpose of evaluating your use of the website and compiling reports on website activity.

We not use, and not allow any third party to use the statistical analytics tool to track or to collect any personally identifiable information of visitors to this site. Google may transfer the information collected by Google Analytics to third parties where required to do so by law, or where such third parties process the information on Google`s behalf.

According to Google Analytics terms of service, Google will not associate your IP address with any other data held by Google.

You may refuse the use of Google Analytics cookies by downloading and installing Google Analytics Opt-out Browser Add-on. The add-on communicates with the Google Analytics JavaScript (ga.js) to indicate that information about the website visit should not be sent to Google Analytics.

Cookies are also used to record if you have agreed (or not) to our use of cookies on this site, so that you are not asked the question every time you visit the site.

Google Analytics Opt-out Browser Add-on

How to control cookies?

You can control and/or delete cookies as you wish. You can delete all cookies that are already on your computer and you can set most browsers to prevent them from being placed.

All about cookies

Managing cookies in your browser

Most browsers allow you to:
  • see what cookies you have got and delete them on an individual basis
  • block third party cookies
  • block cookies from particular sites
  • block all cookies from being set
  • delete all cookies when you close your browser

If you chose to delete cookies, you should be aware that any preferences will be lost. Also, if you block cookies completely many websites (including ours) will not work properly and webcasts will not work at all. For these reasons, we do not recommend turning cookies off when using our webcasting services.
X