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From Bulgaria

28.11.2017 14:02

The European Commission continues BEH investigation, Bulgaria refuses to plead guilty

AUTHOR: publics.bg

© European Commission

The Bulgarian Parliament obliged the Minister of Energy to undertake all measures safeguarding the national interest in the Commission’s case against the country and the dedicated Deputy Prime Minister will execute the decision, the Deputy Chairperson of the Energy Committee, Tasko Ermenkov told journalists, BTA informed.

The Commission’s case is against Bulgarian Energy Holding (BEH), Bulgartransgaz and Bulgargaz for investigation of possible violation of an Article of the Treaty of the Functioning of the EU, which consists of a possible abuse of a dominant position on the gas markets in Bulgaria.

Ermenkov was clear that the country will not plead guilty, so there will be no damages. He stressed that 179 of the 179 members of parliament present supported the decision. While there is no final decision by the Commission, Bulgaria has options and perspectives so that there would be no unnecessary expenditures.

The maximum amount of the fine could be 330 mln euro, Minister of Energy, Temenuzhka Petkova announced on Sunday on the Bulgarian National Radio. She explained that an agreement with the Commission was pursued, but such was not reached. The next step is a prohibition decision, which would contain the amount of the fine, she added.

Temenuzhka Petkova also said that an option such as in the case against Gazprom, related to restructuring, is not possible. She clarified that it was discussed with the Commission, but there was no agreement because the options were not in favour of the Bulgarian side. Answering a question if a possible fine could be avoided by privatising stakes of Bulgartransgaz, Petkova stated that matters of strategic infrastructure and national security should be handled very cautiously.

The Minister of Energy underlined that the Parliament’s decision not to admit guild in the case should be respected. “As I previously said that the Bulgarian Parliament has already acted. We are a parliamentary republic, so what the Bulgarian Parliament has decided will be executed”, she commented.

Meanwhile, the European Commission continues its investigation of BEH and its subsidiaries for an alleged abuse of a dominant position on the natural gas market in Bulgaria, a Commission’s spokesperson said, BTA reported, cited by Dnevnik.

Brussels’s opinion is that citizens and businesses in the EU should be able to benefit from competitive energy prices and security of supply. In order to compete on the Bulgarian gas market, suppliers require access to BEH’s gas infrastructure and the Commission must ensure that everyone obtains non-discriminatory access, EU Commissioner for Competition, Margrethe Vestager, commented at the start of the procedure.

Brussels is concerned that BEH and its subsidiaries are possibly hindering competitors’ access to key gas infrastructure they need for their successful operations on the market. The Commission has concerns that BEH and its subsidiaries have refused to give competitors access to the gas transmission network and the gas storage facility, as well as reserved capacity they do not need on the gas import pipeline.