Bulgaria's Competition Watchdog Slaps Major Fine on E.ON

Business » ENERGY | March 23, 2011, Wednesday // 21:34
Bulgaria: Bulgaria's Competition Watchdog Slaps Major Fine on E.ON E.ON is the monopoly electricity provider in Varna and Northeast Bulgaria. Photo by BGNES

Bulgaria's Competition Protection Commission has imposed on its largest fines ever on German-owned power utility E.ON Bulgaria for abusing a dominant market position.

E.ON Bulgaria has been slapped a fine of over BGN 3.2 M. The procedure against E.ON was triggered by the utility's refusal to provide electricity to an industrial subscriber for its services.

According to the CPC, E.ON Bulgaria Prodazhbi ("Sales") refused to provide electricity to the Gotar Investment OOD because it was owed BGN 30 000 by a previous owner of the plant.

The CPC ruling says that for more than a year E.ON Bulgaria completely blocked the activity of the plant near the town of Novi Pazar by using its dominant position of a regional monopoly electricity provider. The company sought to satisfy its own interest – receiving the specified sum, no matter who might pay it.

Because of the violation of competition legislation, and the fact that this is not the first time E.ON is found guilty of breaking them, the Commission decided to impose a BGN 3.2 M fine, much higher than what it usually imposes. It is based on the E.ON's electricity revenues and the damage suffered by its client. Wednesday's ruling can be appealed.

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Tags: E.ON, EON, Competition Protection Commission, competition, fine

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