CEZ Bulgaria Blames Losses on Decisions of Regulatory Authority

The power distribution and power supply companies of CEZ in Bulgaria, CEZ Razpredelenie Bulgaria AD and CEZ Electro Bulgaria AD, have reported a joint loss of BGN 6.5 M for the first nine months of 2014, according to a media statement of CEZ Bulgaria.

The financial loss of CEZ Razpredelenie Bulgaria AD amounts to BGN 3.674 M, while that of CEZ Electro Bulgaria AD stands at BGN 2.826 M.

„A number of unfavorable decisions of the regulatory authority from the beginning of 2013 led to a sharp decrease in revenues of the power supply and distribution companies of CEZ. The companies have less and less money to cover mandatory expenses and investments in grid maintenance and customer service. The negative balance is damaging to end customers too because it delays the modernization of the grid and services on offer,” said Petr Dokladal, Regional Manager of CEZ for Bulgaria, as cited by the company’s press office.

The company reminds that the share of CEZ in the end price of electricity for household customers has been decreasing from a rate of 13% in 2006-2007 to less than 0.7% in 2014.

CEZ complains about a decision of the State Commission for Energy and Water Regulation (DKEVR) effective as of October 1 under which a total of BGN 0.68 is deducted for grid maintenance and improvement of service from an energy bill of BGN 100.03 of a household customer.

The company points out that it is supposed to maintain and develop the biggest power distribution network in Bulgaria and to improve the service of over 2 million customers with the scant funding it is allocated.

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