A five-member team of Bulgaria's Supreme Administrative Court (VAS) ruled Tuesday that the fines collected by the power utility CEZ over delayed customers' payments are illegal.

According to the VAS magistrates, CEZ had used its monopoly position to collect fines for the three-month billing cycle when customers are behind with payments since for two months the bills are just an estimate and do not reflect the exact amount owed.

Over a year ago, CEZ introduced the three-month billing, but the State Commission for Energy and Water Regulation (DKEVR), under public pressure ordered the utility to reinstate the monthly bills.

According to the magistrates, however, the fee collected for reconnection of power supply, the introduction of the three-months cycle, and interruptions of electricity in case of unpaid bills, cannot be deemed abuse of monopoly position. VAS said the three-month billing had been included in CEZ general conditions, while the decision if it violates consumer rights is within the authority of DKEVR.

The rule is final and cannot be appealed.

In November 2009, another five-member panel of the Supreme Administrative Court upheld the ruling of its three-member panel, which turned down the appeal of the company against the 2008 decision of the energy regulator, forcing CEZ to end its three-month electric power billing by the end of March, 2009 in a bid to protect consumers' interests.

CEZ has already been fined twice for not introducing monthly bills.

The Czech power utility, which supplies power to over 2 million households and companies in western Bulgaria, including the capital Sofia, announced it will introduce monthly bills as of February 1.

In the beginning of April, Prime Minister, Boyko Borisov, declared the three power utilities and the lobbyists who helped implement the present electricity pricing schemes have committed a “daylight robbery,“ vowed to involve the Prosecutor's Office in the probe and even threatened CEZ, E.ON and EVN with nationalization.

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