SEWRC gives CEZ a deadline until 16 April for corrections

Currently, the State Energy and Water Regulatory Commission (SEWRC) can only send a request for the correction of the infringements. So far, these officially include 17 penalty acts for violations imposed on CEZ Distribution and 4 penalty acts for violations imposed on CEZ Electro. These are administrative offences, mostly related to circumvention of the Public Procurement Law and untimely information to SEWRC about CEZ Electro and CEZ Distribution. A meeting is scheduled on April 16, at which licencees of both companies will be heard. If recommendations of the Commission are met, it is unclear whether CEZ's licence will be revoked.

Representatives of the regulator did not give a precise answer to the question whether consumers' interests were damaged because of the formation of the final price of electricity or not and why some customers received electricity bills that were twice as high. After an emergency press conference of the Commission on Wednesday, it became clear that SEWRC will reverse electricity prices, as well as that the future of CEZ's licence is not clear.

Neither lawyers, nor interim Chairperson of SEWRC Juliana Ivanova gave a firm and clear answer whether, as Prime Minister Boyko Borissov announced, there is an option for an 8% reduction of the price of electricity for end users within eight days, i.e. as of March 1.

SEWRC's management explained that, currently, the Commission has no application procedure for quota changes from NEK and ESO - the two companies that should initiate the application. These must be submitted to SEWRC, which, as an independent authority, should vote and decide on such a reduction.

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