- IVLawFirm - https://ivlawfirm.com -

Electric distributors in Bulgaria do not have the right to pass their obligations on to Energy-producing companies

The Bulgarian Commission for Protection of Competition (CPC) stated that the distribution of electricity is a natural monopoly. Bulgarian legislation does not allow two or more electric distributors to obtain licenses for one and the same distinct part of the territory, which is a legislative barrier for entering the market. Based on the above, according to CPC, if the only licensed company for electric distribution imposes costs on electricity producers for the accession to the electric grid to the contrary of Energy Act and Renewable Energy Sources Act in order to obtain unjustified financial benefits, it will commit a violation of the ban of abuse of a monopoly or dominant position pursuant to the Protection of Competition Act. The only obligation of the electricity producers shall be the costs for accession to the grid of its own plant. The outlays for reconstruction and modernization of the current electric infrastructure, including the costs for a new distributor‘s object to the grid, shall be covered by the electricity distributor company.