The Commission for Protection of Competition (CPC) Associates AOBE’s Signal to the Procedure of Analyzing Competitiveness on Local Electricity Market

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The Commission for Protection of Competition (CPC) will join the AOBE’s signal to the formal procedure it has already started to conduct a sectoral analysis of the competitive environment on the electricity market. This becomes clear from CPC’s response to the AOBE‘s signal related to wholesale electricity prices on the market.

In its letter, CPC informs that in the framework of the proceedings of the Commission № CPC / 82/2018, a comprehensive and in-depth analysis of the competitive environment on the electricity market, as well as of AOBE statements, will be carried out in order to identify existing or possible anti-competitive agreements or practices. Within the framework of the analysis, CPC will define relevant markets, their characteristics and structure, barriers to exit, market participants, degree of market competition, regulatory framework, etc., and will draw conclusions on the state of the competitive environment.

“The implementation of a new sectoral analysis of the energy market will give CPC a detailed picture of the current market processes and the need for any additional measures by the Commission, under the provisions of the Law on Protecting Competition, to contribute to proper functioning of the market environment”, says the CPC’s letter to AOBE.

It is recalled that AOBE sent its signal to CPC on 25 January 2018. It stated that the promotion of open and fair competition on wholesale electricity markets to the benefit of end-users was the aim of Regulation (EC) No 1227 / 2011 of the European Parliament. CPC confirmed that it will do the checks requested by AOBE regarding:

  • coordinated behavior of Kozloduy NPP EAD and TPP Maritsa East 2 EAD as the main suppliers of electricity on the free market in Bulgaria when announcing initial auction prices;
  • pre-arranged cooperation between the two plants with certain electricity traders, applying different access to information on tendering procedures;
  • coordinated action by electricity traders in connection with a significant and unjustified increase in the price of active electrical energy offered to end-users.