Bulgarian Energy Watchdog: Power Utilities Might Be Restructured

Electrical power utilities operating in Bulgaria might need to go through a restructuring, according to Angel Semerdzhiev, the head of the Bulgarian state energy regulator.

Discussions for restructuring aim at a complete transparency of the three companies' costs for external services such as consulting, said Semerdzhiev.

End of 2010, the State Commission for Energy and Water Regulation, fined CEZ, E.ON and EVN with penalties totaling close to BGN 3 M for violations of outsourcing regulations, which are believed to have intentionally caused higher prices of electricity.

Those findins were the result of an audit commissioned by Bulgarian PM Boyko Borisov in April 2010.

Tuesday the State Commission head commented that the restructuring measures considered might lead to a "softening" in the increase of power prices for the next periods.

Semerdzhiev estimated that the restructuring might come into place before the end of 2011.

He also commented that the fines that the state watchdog imposed on the three power utilities are currently still under appeal in the courts, but the Commission has grounds to believe it will win the cases.