Position of ENERGO-PRO in relation to the decision of the CPC

In connection with the decision of the Commission for Protection of Competition (CPC) on abuse of a dominant position by ENERGO-PRO Networks AD regarding “slowing down the process of connection of a producer of electricity from renewable energy to the electricity distribution network”, we would like to assure you that ENERGO-PRO Networks AD strictly complies with the regulatory and legal requirements and does not allow situations unequal treatment or unjustified delay in the accession of producers of energy from renewable energy sources (RES).

The decision of the CPC refers to the connection of a photovoltaic power plant on the territory of Dobrich municipality, owned by “V2M” Ltd. During the procedure for connecting the power plant to the electricity distribution network owned by ENERGO - PRO Networks AD (formerly E.ON Bulgaria Networks AD), the company strictly fulfilled its obligations assumed with the concluded connection agreements in compliance with the current Bulgarian legislation.

The manufacturer, “V2M” Ltd, was informed in good time that the distribution company should coordinate the terms of connection of the plant with NEC EAD. This obligation, arising from Ordinance 6 for connection of producers and consumers of electric energy to the transmission and distribution electrical networks, is specified in the preliminary contract between B2M Ltd. and ENERGO-PRO Grids AD. The delay that V2M Ltd. claims to be present is precisely within the process of agreeing with NEC EAD the terms of connection of the plant.

In March 2010, the NEC EAD proposed a text of a preliminary contract, which provides for the disconnection of all SrN outlets and the connected user objects in case of interference caused by the plant. For its part, E.ON Bulgaria Networks has made a number of proposals for revisions to clauses of the contract that it considered could lead to harm or unequal treatment of users. Meanwhile, in May 2010, a letter was received from NEC EAD for freezing the accessions of renewable energy plants on the territory of Dobrich district. This provoked a discussion about the affiliation of the headquarters of B2M Ltd. to the scope of the letter and the conditions therein. In defense of the interests of the manufacturer B2M Ltd., our company made efforts to clarify the issue, including making requests for the organization of a tripartite meeting with the participation of B2M Ltd. and NEC EAD.

The case was examined by the DKEVR. The Commission's instructions were for NEC EAD to conclude a contract with the distribution company and the distribution company to the manufacturer and were duly implemented. Immediately after the conclusion of a final contract between the distribution company and NEC EAD, the corresponding final contract was concluded between ENERGO-PRO Grids AD and “V2M” Ltd., as a result of which the plant was connected to the electricity distribution network and put under voltage in June 2012.

ENERGO-PRO Networks AD categorically declares that it carries out the connection of renewable energy plants, fulfilling all obligations arising from the laws of the Republic of Bulgaria. The company strictly follows the principles of equality and fairness, and rejects allegations of abuse of dominance as untrue and incorrect.

After familiarizing itself with all the arguments of the CPC set out in the document, ENERGO-PRO Networks AD will present its full opinion on the presented decision.