Electric Utilities Refute Bulgarian Audit Reports

Two of Bulgaria's three electric power utilities – the German E.ON and the Czech CEZ voiced Tuesday their utter surprise from media reports about the audit of Bulgaria's State Commission for Energy and Water Regulation (DKEVR).

In a letter to the media, both companies state it is unacceptable for DKEVR to make comments on a report that is neither official not has it been sent to the utilities.

E.ON point out, the DKEVR Head, Angel Semerdzhiev, made the commitment to sent them the results of the audit before it becomes subject to public discussion, but failed to fulfill his promises. They decline further comments until they receive the report.

Earlier Tuesday, Semerdzhiev announced the audit had revealed violations in the 3 electric power utilities, including also the Austrian EVN, which has not yet reacted officially.

The auditors have established three types of violations – suspicious accounting practices in reporting expenses, unsuitable expenses, especially for consulting services, and export of services, according to the DKEVR Head.

Regarding their accounting practices, CEZ stress in the letter they comply with international accounting standards and their books have been audited by the highly-professional company Earnst & Young.

As far as consultants' pay and outsourcing services, CEZ point out their sole goal had been to optimize processes, adhere to requirements for unbundling, and at the end improve customer service.

“All activities of CEZ are transparent and legal,” the letter concludes.

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