Power Distributor CEZ Bulgaria Reports Losses of BGN 11.6M in H1, 2014

Power distributor CEZ Bulgaria EAD has reported a negative financial result of nearly BGN 11.6 M in the first half of 2014.

CEZ Electro Bulgaria AD reported a loss of nearly BGN 6.6 M, while CEZ Distribution AD registered a loss of around BGN 5 M in H1, 2014, according to a media statement of the company.

In the first half of 2013, the total loss of the two companies stood at BGN 3.64 M.

The company explained the negative results with the changes in the regulatory environment, reminding that the State Commission for Energy and Water Regulation (DKEVR) had reduced the share of CEZ in the final price of electricity by 90% at the expense of state-owned companies National Electric Company (NEK) and Electricity System Operator (ESO) in 2013.

Petr Dokladal, CEO of CEZ Bulgaria, noted that the deteriorating financial condition of the companies comprising the group of CEZ Bulgaria EAD obstructed their activity and reduced the opportunities for grid investments to a minimum, thereby endangering the quality of power supply to over 2 million customers.