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Bulgaria's DKEVR Ascribes 2690 Violations to Energy Distributors

Business » ENERGY | May 14, 2014, Wednesday // 14:52| Views: 1622 | Comments: 4
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Bulgaria: Bulgaria's DKEVR Ascribes 2690 Violations to Energy Distributors DKEVR's head Boyan Boev (R) and watchdog member Elenko Bozhkov (L) said Wednesday serious violations had been committed by the EDCs according to the findings of the independent audit. Photo by BGNES

Power distributors operating in Bulgaria committed 2690 infringements, as the national energy watchdog DKEVR's audit revealed Wednesday.

Czech-based CEZ and Energo-Pro and Austrian-based were also accused by DKEVR of having provided false accounts of their revenues, with the latter being "millions of BGN" more than reported, according to Dariknews.

They could be facing a minimal fine of BGN 50 M, as statements setting out their infringements are to be prepared within two weeks.

Regulator representatives added they would refer the matter to the National Revenue Agency, the Agency for State Financial Integration and, personally, to the Prime Minister.

Boyan Boev, who chairs DKEVR, explained expenses of the electricity distribution companies (EDCs) were BGN 818 M less than declared.

"Technical losses" declared by the EDCs were, on the other hand, lower that estimated.

This "secret" profit was used to increase "administrative expenses", including those for consulting services, commission or managerial services.

Some of the costs declared by grid operators are described as "groundless" in DKEVR's audit.

EVN Bulgaria Electricity Distribution, CEZ Distribution Bulgaria and Energo-Pro Grids reported to have also gone around Bulgarian legislation on public procurement by using sister companies to provide their goods and services, thus draining significant amount of money from Bulgaria, DKEVR's Boev claimed.

"Lack of quality of services" is also among the violations, in Boev's words.

The audit of activities of EVN Bulgaria Electricity Distribution, CEZ Distribution Bulgaria and Energo-Pro Grids since 2008, started in the beginning of 2014, before a dispute between DKEVR and the EDCs over debts to the National Electricity Company (NEK) broke in mid-March.

Energy regulator officials have claimed it is unrelated to the financial dispute.

However, following Wednesday's results DKEVR is still to decide whether to impose fines on the regulators instead of suspending their permits to operate in Bulgaria, as some Bulgarian media suggested.

The national regulator has repeatedly postponed its final decisions.

On Wednesday, however, Boyan Boev made DKEVR's first explicit comments on prospective fines for the EDCs.

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Tags: DKEVR, Boyan Boev, CEZ, Energo-Pro, EVN, audit, EDCs, power distributors, licenses. electricity distribution companies, grid operators, NEK
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» To the forumComments (4)
#4
EDC - 15 May 2014 // 08:05:42

False accounting ? Fraud ? but to rich to care ?
Governments encircle them selves with the rich if not rich themselves ,they party together talk and discus what they want and what was before illegal becomes legitimate happens all round the world ,legalized crimes and only the poor of the countries pay as they can not change it. Not even at the ballot box of elections that just moves one group of rich people into another political circle .So the world goes on and they just get richer ????????????

#3
George Zheliazkov - 14 May 2014 // 23:58:30

Listen fake George,
You messed it all up...
Bulgaria should have a diverse trade and relationship with ALL!
While the emphasis should be somewhat on the emerging markets due to the rapid growth, trade should be done also with the west. Gone are the days of east and west and the cold war.... Diversity and flexibility are the new norm.
About the energy sector Bulgaria doesn't have any and a new NPP is needed. Local companies should be in charge.
No special treatment to Russia or the EU. Russia is Europe and Europe is Russia.
Check the links below.

http://topic.chinadaily.com.cn/index/cache?collection=cbsweb&source=Agencies&title=China+National+Nuclear+Power+plans+%242.6b+share+sale+in+IPO&aid=17484912

http://topic.chinadaily.com.cn/index/cache?collection=cbsweb&source=Xinhua&title=New+nuclear+generating+unit+operational+in+East+China&aid=17484090

http://topic.chinadaily.com.cn/index/cache?collection=cbsweb&source=Xinhua&title=Chinese%2C+Romanian+firms+to+extend+nuclear+power+co-op&aid=17468061

http://topic.chinadaily.com.cn/index/cache?collection=cbsweb&source=chinadaily.com.cn&title=Russia+enhances+attraction+for+Chinese+investment&aid=17505079

#2
Voltron - 14 May 2014 // 20:14:22

How about giving them to Bulgarian companies??

#1
George Zhelyazkov - 14 May 2014 // 16:14:31

Let's face it, Bulgaria doesn't need Western power companies managing our electricity. I have always said that our energy and our banking should be handled by our Russian brothers. Close down those clowns Energo-Pro, CEZ and Eon and give the distribution to Rosatom. We need to be smart, the Russians are our brothers and they look out after us. We should let them control electricity like they control our gas.

We should stop this nonsense of asking the EU/West for approval for everything. Why should we get free money from the EU or Germans or whoever when we can get money at high interest from our Russians cousins? The Russians are an emerging market not like Europe. Their economy is growing by double digits, their population is booming and their infrastructure shames China. Right now 15% interest for building our highways seems a lot but in 5 years after we export everything to our Slavic brothers in Russia and Uzbekistan and our country is the richest in Europe you'll see who was right.....

Emerging markets forever.

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