Antitrust Law Daily Wrap Up, ANTITRUST NEWS: EC issues statement of objections to Bulgarian Energy Holding, (Mar 23, 2015)

By Linda O’Brien, J.D., LL.M.

The European Commission (EC) has sent a statement of objections to Bulgarian Energy Holding (BEH), informing it of the Commission's preliminary view that BEH may have breached European Union (EU) antitrust rules by hindering competitors’ access to key gas infrastructures in Bulgaria, the EC announced today. The statement of objections is also addressed to BEH's gas supply subsidiary Bulgargaz and its gas infrastructure subsidiary Bulgartransgaz.

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.

In June 2013, the EC opened formal proceedings to investigate whether BEH may be abusing its dominant market position in gas markets in Bulgaria. The Commission had concerns that BEH and its subsidiaries might prevent competitors from gaining access to the infrastructure they need in order to successfully compete on gas supply markets in Bulgaria. At that stage, the Commission had 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.

In a statement, EU Commissioner in charge of competition policy Margrethe Vestager said, "EU antitrust rules are an important tool to contribute to the 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."

Companies: Bulgarian Energy Holding

News: Antitrust