E.ON Left Bulgaria Due to Hostile Climate - Analysts
German company E.ON has decided to shed its Bulgarian power utility E.ON Bulgaria due to an overregulated market and political attacks by senior government officials, according to Bulgarian comentators.
Saturday it was announced that E.ON Bulgaria is being sold to Czeck Energo Pro for EUR 133 M.
The decision to sell E.ON Bulgaria, which was announced earlier, most probably stems in part from the heavy regulation on the sector in the country, as well as criticisms to power utilities on the part of Bulgarian PM Boyko Borisov, writes Dnevnik.bg.
The site also mentions a new global strategy announced by E.ON last year, which includes moving away from "non-competitive markets" in Europe to more vital ones in Russia and South America.
In 2010, the Bulgarian State Commission for Energy and Water Regulation conducted an audit on the country's power utilities at the request of PM Borisov.
The audit check found that all three utilities - E.ON, CEZ and EVN - had irregularities in electricity price-formation and fined them.
E.ON entered Bulgaria in 2007 by paying EUR 140.7 M for 67% of the state power distribution companies in Varna and Gorna Oryahovitsa.
Czech company Energo Pro, which has now bought the business, specializes in hydro power production and electricity from other renewable energy sources.
It has a branch in Bulgaria, Energo Pro Bulgaria, which operates eight hydro power plants and is the largest hydro power producer in the country.
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