The Commission for Protection of Competition sanctioned the National Electricity Company EAD for abuse of dominant position under Art. 21, p. 1 of the LPC

The Commission for Protection of Competition imposed to the National Electricity Company EAD pecuniary sanctions in a total amount of 315 612 BGN for infringements of Art. 21, p.1 of the LPC. NEK abused its dominant position on the market of balancing of electricity producers from renewable energy sources at preferential prices on the territory of the country.

The infringements consist of imposing by the NEK EAD of unfair trading conditions to RES producers.

The Commission established that NEK EAD put unjustified additional costs of imbalances on RES producers by altering the forecast hourly production schedules submitted by the RES producers - members of the special balancing group (SBG) of NEK EAD. Since the launch of the balancing market on 01.06.2014 until 23.07.2015, as a coordinator of the SBG, NEK EAD, unilaterally and unjustifiably had been changing the hourly forecast schedules submitted by RES producers. As a result of these changes, the RES producers were financially burdened by the artificially increased imbalances for them.

The Commission also established that between 01.06.2014 and 01.10.2018 NEK EAD had allocated to the RES producers - members of the SBG of NEK EAD, additional unreasonable costs for imbalances through the application of Section IV of the Methodology for allocation of imbalances in the special balancing group with coordinator in the SBG of NEK EAD (Тhe Methodology).

It was established in the proceeding that the rules adopted by NEK EAD under Section IV of the Methodology allow the company to adjust to the RES producers costs for imbalances that Electricity System Operator (ESO EAD) had not recorded and accordingly had not charged to the NEK EAD. By applying Section IV of the Methodology NEK EAD unilaterally and unjustifiably imposed on the RES producers additional financial costs which do not represent imbalances allocation in the SBG of NEK and do not reflect the costs objectively incurred for the energy system.

 The decision may be appealed before the Sofia Administrative Court in respect of it conformity with the law by the parties to the proceedings or by any third person that has legal interest within a term of 14 days, which shall start as of their notification in accordance with the procedure laid down in the Code of Administrative Procedure, and in respect of third parties – as of the date of the publication of the decision in the electronic register of the Commission.

The full text of the decision is available in the public electronic registry of the CPC at: http://reg.cpc.bg.