European Commission

EUROPEAN COMMISSION
PRESS RELEASE
Brussels, 12 August 2014
Antitrust: Commission sends Statement of Objections to
Bulgarian Energy Holding for suspected abuse of
dominance on Bulgarian wholesale electricity market
The European Commission has informed Bulgarian Energy Holding (BEH) of its preliminary
view that territorial restrictions on resale contained in BEH's electricity supply contracts
with traders on the non-regulated Bulgarian wholesale electricity market may breach EU
antitrust rules. Such restrictions limit purchasers' freedom to choose where to resell the
electricity bought from BEH. The sending of a Statement of Objections does not prejudge
the final outcome of the investigation.
The Commission has concerns that BEH, the incumbent state-owned vertically-integrated
energy company in Bulgaria, might be hindering competition on the non-regulated
wholesale electricity market in Bulgaria by imposing restrictions on where the electricity
supplied by BEH may be resold.
The Statement of Objections sets out that a majority of electricity supply contracts
entered into between BEH and traders stipulate that electricity supplied by BEH may only
be resold within Bulgaria or may only be exported. The contracts also contain control and
sanctioning mechanisms which allow BEH to monitor and punish customers who fail to
comply with these territorial restrictions.
The Commission's provisional finding is that these territorial restrictions constitute an
abuse of BEH's dominant market position, which is prohibited by Article 102 of the Treaty
on the Functioning of the European Union (TFEU). Such behaviour, if established, has the
effect of distorting the allocation of electricity within the Single Market, affecting liquidity
and efficiency of electricity markets and raising artificial barriers to trade between Bulgaria
and other Member States.
Background
The Commission opened formal proceedings to investigate whether BEH may be abusing
its dominant market position in the wholesale electricity market in Bulgaria on 27
November 2012 (see IP/12/1307).
In a separate investigation, the Commission is investigating whether Bulgarian Energy
Holding (BEH), its gas supply subsidiary Bulgargaz and its gas infrastructure subsidiary
Bulgartransgaz might be hindering competitors from accessing key gas infrastructures in
Bulgaria, in breach of EU antitrust rules (see IP/13/656). The Commission opened formal
proceedings in July 2013.
Article 102 TFEU prohibits the abuse of a dominant market position which may affect trade
between Member States. The implementation of this provision is defined in the Antitrust
Regulation (Council Regulation (EC) No 1/2003), which can be applied by the Commission
and by the national competition authorities of EU Member States.
IP/14/922
A statement of objections is a formal step in Commission 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 Commission and national
competition authorities. The Commission takes a final decision after the parties have
exercised their rights of defence.
If, after the parties have exercised their rights of defence, the Commission concludes that
there is sufficient evidence of an infringement, it can issue a decision prohibiting the
conduct and impose a fine of up to 10 % of a company’s annual worldwide turnover.
For more information, you may consult the Commission's public case register on the
competition website under the case number 39767.
Contacts :
Antoine Colombani (+32 2 297 45 13, Twitter: @ECspokesAntoine )
Yizhou Ren (+32 2 299 48 89)
For the public: Europe Direct by phone 00 800 6 7 8 9 10 11 or by e-mail
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