The European Commission sent Russian gas monopoly Gazprom a formal
request in February to provide information in connection with an alleged
violation of antitrust legislation in gas supplies by its affiliated
companies in Bulgaria, Interfax quoted Gazprom as saying on March 15 in a
memorandum for a new Eurobond offering.
The request states that the Commission has information that Gazprom
may have abused its dominant position on the Bulgarian wholesale gas
market and/or participated directly or indirectly in an uncompetitive
agreement concerning the Bulgarian wholesale gas market, thus violating
European Union antitrust legislation, the memorandum states.
“The European Commission is closely following the competitive
conditions as regards the Bulgarian gas market,” a Commission spokesman
told New Europe on March 15.
There is only one Gazprom’s “affiliate” in Bulgaria – Overgas Inc. –
which owns a low pressure gas infrastructure (network) and buys 10 % of
Russian imported gas to supply 50,000 customers (households) and
two-three industrial consumers, a source in Sofia told New Europe.
“Starting in autumn 2015, Gazprom and Overgas entered into an unpleasant
spat, culminating in a sudden warning by Gazprom that it would stop
deliveries to Overgas from January 1, 2016. Under the circumstances,
Overgas had either to stop retail supplies and lose business and
customers or buy gas from Bulgargaz, the national ‘public supplier’, at
rates higher than the preferential rates offered by Gazprom to its
affiliate,” the source argued.
On top of this Gazprom, which has a 49% stake in Overgaz, decided,
“unilaterally” and with a short notice, according to local media, to
sell its share, the source said, adding that was at a time when Overgaz
cannot afford to buy the whole stake.
“The commercial relationship between Bulgargaz and Overgaz is tense
because a few years back Overgaz managed to make the Commission send a
critical warning to Bulgargaz for abusing the market principles. After
Gazprom’s hostile move, the National regulator was pressured to make an
official investigation into the financial state of Overgaz, suggesting
that it might withdraw its license if improprieties were found. Luckily
for Overgaz, the regulator gave it a clean bill of lading,” the source
told New Europe.
“Privately, Overgaz’s management assesses Gazprom moves in relation
to their ‘divorce’ as a blow in the back but would not say anything
further either privately or publicly. Gazprom’s giving up on Overgaz is
considered part of a general pattern of withdrawal from joint ventures
in the EU, which do not correspond to the Third package. To be sure,
Gazprom had expected a more dedicated attitude and result-oriented
actions from Overgaz on the issues of South Stream,” the source claimed.
The European Commission is looking separately into the alleged
interruption of gas deliveries from Gazprom to Overgas. Meanwhile, the
antitrust investigation into Gazprom behaviours in Central and Eastern
European gas markets is ongoing.
Last month, Gazprom’s, Italy’s Edison and Greece’s DEPA signed in
Rome an agreement to develop a natural gas pipeline between Greece and
Italy to transport Russian gas to Europe.
Peter Poptchev, a long-time Bulgarian ambassador-at-large for energy
security, said he couldn’t think of a reason that the EU looking into
possible gas supply abuse in Bulgaria by Gazprom impacting the IGI
Poseidon project. “I have read the MoU adopted by the companies – it
does not specify where the Russian gas would come from, Bulgaria or
Turkey, and this is deliberate, regardless of the present poor state of
bilateral affairs between Russia and Turkey,” he said.
Meanwhile, the Commission spokesman told New Europe on March 15 that
the Commission has seen the announcement by three private firms (DEPA
SA, Edison SpA and Gazprom) about their intention to build a pipeline.
“It is an announcement of a MoU signed by the CEOs of the aforementioned
private companies. The Commission remains with its known position that
interconnection projects must contribute to the EU’s diversification and
energy security strategy, and is compatible with all the relevant EU
legal requirements; in particular the third energy package rules. That
is part and parcel of the Energy Union,” the Commission spokesman said.
http://neurope.eu/article/eu-wants-gazprom-anti-trust-answers-bulgaria-gas/