Bulgaria’s State Energy and Water Regulatory Commission chairman Boyan Boev is exhausting CEZ, EVN and Energo Pro through procedural delays. The procedure for revocation of licenses of the electricity distributing companies began in March after they deducted the due sums to them by the National Electric Company (NEC) money for green energy. At the first meeting, held on April 7, the state company unexpectedly submitted additional evidence and therefore uncovered the option for a new hearing for April 28. This time it did not get to the final outcome, either, because the regulator explained that by a letter of 17 April EVN requested additional time to be able to analyze the information provided by NEC.
Although only one company requested postponement Boyan Boev granted an extension up to May 12, which will be available not only for EVN, but also for CEZ and Energo Pro. Their positions will be considered in closed session and then the regulator will take its final decision.
Such actions are a bit strange, since it was Mr. Boev who said that the provided additional documents refer only to the dispute between EVN and the National Electric Company, where the private company withheld 216.5 million levs. Even the representatives of the Austrian company seemed surprised by the extension decision. President of the Board of Directors of EVN Bulgaria Joerg Sollfelner said they carefully reviewed the documents provided by NEC as new evidence. „We believe that these documents did not relate to the subject of the present proceedings, therefore EVN is unable to give any opinion on them relating to this procedure. We believe that the trade dispute between NEC and EVN can and should be resolved only through negotiations, and if no agreement is reached, the parties need to go to court,“ Mr. Sollfelner added.
As to what exactly are these so important new documents that already for a second time obstruct the progress of the procedure for revocation of licenses, the President of the regulator categorically refused to comment on. The BANKER found out that in fact this is quite a bulky stack of invoices between NEC and EVN throughout 2013.
As the industry insiders believe more and more that the purpose of this procrastination is to get the owners of the electricity distribution companies to give up their assets so that at their places other players may come in. The problem is that if their energy regulator revokes their licences the obligations will remain outstanding and will have to be borne by the prospective new owner. So now the procedure is delayed in order to allow the NEC to settle their disputes with CEZ, EVN and Energo Pro through agreements.
The BANKER
