site.btaProsecution Investigates Electricity, Water Regulatory Commission Officials

Prosecution Investigates Electricity, Water Regulatory Commission Officials

Sofia, April 24 (BTA) - The Anticorruption Specialised unit at the Sofia City Prosecution Office has launched pre-trial proceedings for crimes in official capacity against officials who are members of the Energy and Water Regulatory Commission (EWRC), the prosecution said Monday.

The pre-trial proceedings were initiated following an alert received by the Prosecutor General on January 16. The alert was also sent to the National Assembly, the Prime Minister, the Interior Minister and the Chairman of the State Agency for National Security. To date the prosecution has no information about the actions taken by the various authorities, the prosecution pointed out.

The Sofia City Prosecution Office has checked the statements in the alert. The investigation proceedings launched on Monday should establish whether the members of the independent regulatory authority have fulfilled their obligations to control the implementation of basic elements in the natural gas distribution companies' business plans, as well as whether the investments they have made actually correspond to what was declared before and endorsed by EWRC. The implementation of these obligations is directly related to the price of natural gas for end-consumers.

The merger of commercial corporations with Sofiagas (Subsequently Overgas Networks AD) in March 2015 will also be subject to the investigation, particularly whether EWRC's actions in this regard have not led to keeping an unreasonably high natural gas sale price.

Another point in the investigation is related to a complaint submitted by Overgas Inc. AD to the then State Energy and Water Regulatory Commission (SEWRC) on January 20, 2011. The complaint was against Bulgartransgaz EAD for its failure to provide access to the gas transmission system and to the gas hub in Chiren. The regulator is obliged to consider complaints and to pronounce itself within two months. Although the Commission was duly notified, its members have not pronounced themselves on the complaint and have not passed any decision whatsoever. This has led to the initiation an abuse of a dominant position case before the European Commission, against the Bulgarian Energy Holding, Bulgargaz EAD and Bulgartransgaz, which has not been completed to date. Inaction of SEWRC officials may lead to significant detriment in the form of both financial sanctions and disruption of the state energy system.

The prosecution is also checking whether any abuses were committed in the most recent price formation of natural gas, heating and water for Sofia, which has led to a considerable price hike for consumers.