Czech 70% state-owned power company CEZ AS (BAACEZ.PR) Friday said it formally lodged a complaint at the European Commission against Bulgaria for the country's failing to honor national and European energy market regulations.

The Czech company said that recent actions of Bulgarian authorities, in which the local energy regulator has unexpectedly cut prices and said it may revoke CEZ's license, may be in conflict with valid legislation as well as with European Union treaties on the free flow of capital.

"We were forced to take this step due to repeated negative attacks from Bulgarian institutions," Tomas Pleskac, head of the company's international unit, said.

Officials at the Bulgarian Energy Regulatory Commission were not immediately available for comment Friday.

CEZ is asking the European Commission for an independent assessment of the situation and to determine whether the company's Bulgarian electricity distribution unit is receiving fair treatment.

The Bulgarians have repeatedly said they are concerned about CEZ's business practices. The Bulgarian energy market regulator said Thursday it was concerned whether CEZ and other companies were in collusion to prevent customers from switching electricity providers. Also Thursday, the Bulgarian regulator raided CEZ's office to look for evidence of collusion.

The country's energy regulator in early March cut electricity distribution tariffs by roughly 7% and on April 16 will decide whether to revoke CEZ's license to operate in the country.

CEZ shares trade up 2.4% on the day at 588.5 koruna ($29.3), outperforming the overall higher market in Prague .
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