Bulgaria’s State Commission for Energy and Water Regulation (DKEVR) is planning to fine Czech-owned power utility CEZ because it delayed the purchase of equipment, built by the business, for connection to the electricity transmission network.

The Head of DKEVR, Angel Semerdzhiev, explained Tuesday that according to the ordinance for connecting consumers, there is a possibility that they build their own network and transformer post themselves, and then the holding is obligated to buy it.

“[The buying] never happened with CEZ and they have accumulated the most claims, in comparison to the other power utilities that supply Bulgaria with electricity – E.ON and EVN,” Semerdzhiev said.

According to data from the watchdog, CEZ has accumulated more than BGN 100 M in debts to consumers.

“We will try to find a way to penalize CEZ and stop this practice. The permission to people to build their own network should be an exception and it has turned into a common practice,” Semerdzhiev said.

He has explained that the company would first be fined for not joining the companies on time, and then the watchdog would try to change the legislation, in order to make clear when and how the equipments could be bought.

Semerdzhiev has acknowledged that one of the reasons for the bad practice is the lack of strict deadlines, within which the power utilities could buy the built network.

“The question is why is this happening only to CEZ and not to the other power utilities. This is what we will investigate. The others also have violations, but not in such large scale as CEZ,” he said.

The DKEVR head also said that stating that the delay of the purchase was a result of the construction boom and the creation of many enterprises was unreasonable. He added that CEZ does not pay its consumers for the equipment and does not pay the required fees for their use.

Semerdzhiev has reminded that the three power utilities – CEZ, E.ON and EVN, are currently appealing their fines of BGN 2,98 M in total, issued last week by the commission, because of violations in their licenses.

“Let them appeal. They would probably have many other reasons in the future to do that,” he said.

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