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Law Files Against Bulgaria from EVN and CEZ.

Published: April 3, 2013; 17:03 · (Vindobona)

Power Suppliers EVN, CEZ and Energo Pro have to face high losses. CEZ announced to file a law against Bulgaria as well.

Law Files Against Bulgaria from EVN and CEZ. / Picture: © CEZ

The developments in Bulgaria in the recent months with mass protests, early elections and the cut in energy prices have all had negative effects on the power companies in Bulgaria. The three biggest electricity providers – Austrian EVN and Czech CEZ and Energo Pro – have to face high losses wheareas the Bulgarian energy regulator DKEVR distances itself from responsibility. Head of the authority, Evgenia Haritonova explains that the business losses were resulting from EU laws. The price for renewable energy in Bulgaria was in accordance with the average prices for green energy in the EU. Furthermore, the companies – among them EVN – had received green energy at preferential rates.

Only recently, EVN announced that the losses from July 2012 til Februar 2013 were amounting to € 60m. Moreover, the electric provider forecasts a further loss of € 40m for the second quarter of 2013. The reason for the financial losses is green energy. From July to February, EVN had to pay for the supply of green energy in advance, as is prescribed by law. On March 5, DKEVR announced a cut in energy prices of 7 %. Thus EVN is now receiving less than the company had actually paid for. EVN plans to file arbitral proceedings before the International Court of Arbitration against the state of Bulgaria.

Last Friday, CEZ filed a law with the EU Commission against Bulgaria. At the beginning of this year, the former Bulgarian government has withdrawn the licence from CEZ in the connection with the protests against high energy prices. The power supplier has also been withdrawn the licence in Albania and has to write off a total of $ 289m.