Reuters: Regulatory News: UPDATE 1-Czech CEZ under pressure in Bulgaria over license

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UPDATE 1-Czech CEZ under pressure in Bulgaria over license Feb 20th 2013, 12:29 Wed Feb 20, 2013 7:29am EST * Regulator seeks to revoke CEZ license * Dispute for CEZ comes after losing license in Albania * Czech PM asks to hear reasons for move SOFIA, Feb 20 (Reuters) - Bulgarian regulators pledged to press on with the cancellation of Czech utility CEZ's distribution license on Wednesday although some softer language from officials suggested there may be room for compromise. Before resigning in response to mass protests on Wednesday, Bulgarian Prime Minister Boiko Borisov sparked an international row by promising to revoke CEZ's license and fine other foreign power firms. Although Bulgaria is not a huge market for what is central Europe's biggest publicly listed company, the move brought protests from the Czech prime minister and other officials and sent its shares lower. On Wednesday, Bulgaria's State Energy and Water Regulatory Commission said that CEZ had evaded public procurement laws but left the door open to dropping the process later. "The process has only started and if the commission is convinced the breaches are reparable and CEZ agrees to comply with regulations, they may also not be revoked," Andon Rokov, a member of the energy regulator, told reporters. "They, however, will be revoked if the breaches cannot be repaired." The row in Bulgaria comes at a difficult time for the majority state-owned CEZ as it also deals with the loss of its license in Balkan state Albania, faces police investigations at home over past deals and is negotiating to end an EU probe in Brussels. The regulator also said CEZ had breached methodology on green energy which has caused losses to Bulgaria's state power utility NEK among other minor administrative violations. CEZ shares had dropped 0.5 percent down to 608 crowns by midday, just off on three-week low hit on Tuesday. Under pressure from sagging power prices, they are close to a four-year lows. CEZ spokeswoman Barbora Pulpanova reiterated that the company saw no reason to have its license revoked. The company is holding a news conference scheduled for 1300 GMT in Prague. Link this Share this Digg this Email Reprints

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