PRAGUE ASKS THE COMMISSION TO REACT

In Prague, Czech Prime Minister Petr Nečas said in a statement that he expected Bulgaria to keep its international obligations as well as the investment protection agreement in its dispute with ČEZ.

The problem of high prices of electricity in Bulgaria is politicised and statements by Bulgarian representatives regarding ČEZ are "non-standard," Nečas said, quoted by the ČTK news agency.

"I expect Bulgaria as a member of the European Union to keep international obligations, the European law as well as its own laws, including those regarding foreign investment protection," Nečas said.

Industry and Trade Minister Martin Kuba said he intended to discuss the situation in the European Commission. The Czech minister called Bulgaria's conduct unprecedented.

‘Systemic violator’

A Bulgarian prosecutor said ČEZ was a “systemic violator” of its contract with the Bulgarian authorities, citing among other things that the utility had assigned its procurement to its own subsidiaries, Dnevnik, the EurActiv partner in Bulgaria, reported.

The Bulgarian energy and water regulator DKEVR has opened a procedure for withdrawing the license of ČEZ, based on 17 acts on various regularities, it was announced.

Economy and Energy Minister Delyan Dobrev said he could not comment if ČEZ would lose its license, saying it was the responsibility of the regulator.

“If the [regulator] decides to do so - this is a process which requires more than one single step, it is a process which begins with a notification, and ČEZ will have time to respond,” Dobrev said.

Marlene Holzner, spokeswoman for Energy Commissioner Günther Oettinger said that the Commission, said was “a little bit early” to react to the threats against the Czech utility.

“It is the responsibility of the member state and the regulator to give a license and to withdraw a license,” Holzner said.