Bulgarian PM Oresharski Threatens Power Distributors

If grid operators in Bulgaria do not comply with the law, the national energy watchdog DKEVR will suspend their licenses, Bulgaria's Prime Minister Plamen Oresharski said.

Oresharski added he had no information of political pressure applied on the State Commission for Energy and Water Regulation (DKEVR) regarding permits of power distributors, according to the website Expert.bg.

The Prime Minister is the latest Bulgarian politician to take a tough stance on the dispute that aroused between the distributors and the national regulator DKEVR, as the latter has until May 12 to decide whether to cancel operators' permits over alleged debts.

NEK claims that Czech-based CEZ and Energo-Pro, as well as Austrian-based EVN, are to pay millions of BGN to the company. The power distributors, on their behalf, demand some BGN 150 M of compensations for uncollected renewable energy taxes and explain they have kept back part of the sum to balance on their budget.

NEK has warned against not receiving its money, declaring this could pose a threat to energy security and supplies to users.

No official decision has been taken so far after the European Commission stepped in by sending a letter to Economy Minister Dragomir Stoynev demanding an explanation of Bulgaria's behavior toward the companies.

Hans Ten Berge, Secretary General of the Union of Electricity Industry (EURELECTRIC), meanwhile said he believed scrapping of permits could do nothing more but to feed "some people's ego".

Ten Berge was in Bulgaria on Wednesday for an open lecture on the challenges faced by the electricity market in the country.