site.btaEC Sends Statement of Objections to Bulgarian Energy Holding for Suspected Abuse of Dominance

EC Sends Statement of Objections to Bulgarian Energy Holding for Suspected Abuse of Dominance

Brussels, March 23 (BTA Correspondent Nikolay Jeliazkov) - The
European Commission (EC) Monday said it has sent a statement of
objections to Bulgarian Energy Holding (BEH), informing it of
the Commission's preliminary view that BEH may have breached EU
antitrust rules by hindering competitors' access to key gas
infrastructures in Bulgaria.

The statement of objections is also addressed to BEH's gas
supply subsidiary Bulgargaz and its gas infrastructure
subsidiary Bulgartransgaz. The sending of a statement of
objections does not prejudge the outcome of the investigation,
the press release reads.

EU Commissioner in Charge of Competition Policy Margrethe
Vestager is quoted as saying that EU antitrust rules are an
important tool to contribute to the European Energy Union. "We
need to break down barriers so that EU citizens and businesses
can enjoy more competitive energy prices and security of supply.
 To compete on the Bulgarian gas supply markets, companies need
access to BEH's gas infrastructure. The Commission must make
sure that fair access is granted," Vestager said.

The press release recalls that BEH is the incumbent state-owned
energy company in Bulgaria. It is vertically integrated meaning
that BEH supplies gas and its subsidiaries own or control the
domestic Bulgarian gas transmission network, the only gas
storage facility in Bulgaria and the capacity on the main gas
import pipeline into Bulgaria.

The EC opened proceedings in July 2013 to investigate whether
BEH may be abusing its dominant market position in gas markets
in Bulgaria. The Commission has concerns that BEH and its
subsidiaries may be preventing competitors from gaining access
to the infrastructure they need in order to successfully compete
 on gas supply markets in Bulgaria. At this stage, the
Commission has concerns that BEH and its subsidiaries have
refused to give competitors access to the gas transmission
network and the gas storage facility, as well as reserved
capacity they do not need on the gas import pipeline, the press
release reads.

If the concerns are justified this behaviour would have reduced
and continues to reduce competition in gas supply markets in
Bulgaria.The EC's provisional finding is that these practices
may constitute an abuse of BEH's dominant position, which is
prohibited by Article 102 of the Treaty on the Functioning of
the European Union (TFEU).

In a separate investigation, in August 2014 the EC issued a
statement of objections to BEH concerning possible territorial
restrictions in BEH's electricity supply contracts with traders
on the non-regulated Bulgarian wholesale electricity market, the
 press release recalls further.
 
A statement of objections is a formal step in EC investigations
into suspected violations of EU antitrust rules. The Commission
informs the parties concerned in writing of the objections
raised against them. The addressees can examine the documents in
 the Commission's investigation file, reply in writing and
request an oral hearing to present their comments on the case
before representatives of the EC and national competition
authorities.

If, after the parties have exercised their rights of defence,
the EC concludes that there is evidence of an infringement, it
can issue a decision prohibiting the conduct and impose a fine
of up to 10 per cent of a company's annual worldwide turnover,
the press release explains.