Bulgaria's BEH Units May be in Breach of Anti - Trust Rules

Bulgarias BEH  Units May be in Breach of Anti - Trust Rules
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Τρι, 24 Μαρτίου 2015 - 17:49
The European Commission said on Monday it has sent a statement of objections to state-operated Bulgarian Energy Holding (BEH) and two of its units, informing them that they may have breached EU antitrust rules.
The European Commission said on Monday it has sent a statement of objections to state-operated Bulgarian Energy Holding (BEH) and two of its units, informing them that they may have breached EU antitrust rules.

At this stage, the Commission has concerns that BEH and gas monopoly Bulgargaz and gas transmission system operator Bulgartransgaz have refused to give competitors access to the gas transmission network and the gas storage facility, as well as reserved capacity they do not need on the gas import pipeline, it said in a statement on its website.

"If the concerns are justified this behaviour would have reduced and continues to reduce competition in gas supply markets in Bulgaria," the Commission noted, adding, that its provisional finding is that these practices may constitute an abuse of BEH's dominant position.

The sending of a statement of objections does not prejudge the outcome of the investigation, the Commission noted.

The Commission opened formal proceedings against BEH in July 2013 to investigate whether the company may be abusing its dominant market position in the gas market in Bulgaria.

In a separate investigation, in August 2014 the Commission issued a statement of objections to BEH concerning possible territorial restrictions in its electricity supply contracts with traders on the non-regulated Bulgarian wholesale electricity market.

A statement of objections is a formal step in Commission investigations into suspected violations of EU antitrust rules.

If, after the parties have exercised their rights of defence, the Commission concludes that there is evidence of an infringement, it can issue a decision prohibiting the conduct and impose a fine of up to 10% of a company’s annual worldwide turnover.

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