Online Newsletter
Sign up for our newsletter to receive the latest news and information from publics.bg

News

From Bulgaria

03.04.2013 17:28

Investigations Deemed the State Energy Regulator “Inefficient”

The regulator failed to demand the state dividend from electricity distribution company managed by CEZ

AUTHOR: publics.bg

© publics.bg

Five criminal proceedings in Bulgarian energy sector have been launched by the Prosecutor’s Office following investigations in the state energy regulator, the three electricity distribution companies managed by CEZ, EVN and Energo-Pro and the state-owned energy company NEK. The investigations concluded that the regulator was acting inefficiently because it did not control the energy companies according to its rights and failed to devise acts for committed administrative breaches. Local media reported that Mihail Andonov, CEO of NEK in 2011 – 2012 will be investigated for premeditated abeyance.

Deputy chief prosecutor Kamen Mihov said that the regulator failed to exercise control over the investment process and the investment expenses of the electricity distribution companies. The regulator is also being investigated for not seeking dividend amounting to BGN 500 m (about EUR 250 m) from CEZ, out of which the state could get 33% - the equivalent of the state share in the electricity utility. Investigations are to be launched on officers of the regulator which were responsible for taking actions in assuring the state's interest.

The electricity distribution company that operates in North-Western Bulgaria and is managed by CEZ is also subject to proceeding due to findings of public procurement law breaches.