CEZ AS (BAACEZ.PR), a central European power company based in the Czech Republic, Wednesday said it is engaged in seven lawsuits or arbitrations in Bulgaria.
CEZ filed the suits and arbitrations in the hope the results will allow CEZ to further expand its operations in Bulgaria, the country where CEZ has its most comprehensive foreign operations, Tomas Pleskac, head of CEZ's international division, said at a press conference.
The local regulator limits electricity sales of market players via a quota system in Bulgaria, he said, and added that Bulgaria's national electricity company NEK is abusing its dominant position in the market and preventing CEZ from increasing its sales there.
As regards expansion in Bulgaria, CEZ is now preparing to build a new electricity generation unit at the company's Varna power plant, but company officials didn't specify the new unit's capacity or total investment.
The Varna power plant produced 3,735 gigawatt hours of electricity last year, compared with 2,980 gigawatt hours the previous year. CEZ's power sales in Bulgaria reached 8,272 gigawatt hours last year.
Separately, Pleskac said that previously announced plans to build a coal-fired power plant in the Bosnian city of Gacko are on track according to original plans, despite claims last year that minority shareholders in the project may derail construction. CEZ holds a 51%-stake in the Gacko project.