POWER April 2013 - 13

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The European Commission (EC) in January had referred
Bulgaria-which joined the EU in 2007 but has been criticized
for shortcomings that remain regarding corruption and
organized crime-to the European Court of Justice for failing
to fully abide by EU energy market rules.
An EU country report published last year finds two issues
2. A power protest. Mass protests by Bulgarians over surging
January electricity bills forced the prime minister, Boyko Borissov, and
his center-right government to resign in mid-February. Bulgarians allege
corruption between the government and three utilities that control
the distribution network. Courtesy: Blisses
with Bulgaria's recent power sector reforms. First, liberalization
of the nation's wholesale market is incomplete. " There
are quotas, there is a dominant player and there are no free
prices, " Marlene Holzner, spokesperson for EU Energy Commissioner
Günther Oettinger told the EU's web-based media
portal Euractiv in February. Second, despite recommendations
by the EC, the country's electricity regulator is not
independent. " In Bulgaria there were regulated prices for
small and medium enterprises and also for end users. The
Commissions' position was that Bulgaria should have market
prices, but also regulated prices for very vulnerable consumers, "
it said.
Former Prime Minister Borissov had sought to quell the
chaotic protests in February by announcing Czech utility CEZ
would be stripped of its license. Though this failed to diffuse
public tensions and calm protests, he also pledged to cut
power prices by 8% starting March 1. Czech Prime Minister
Petr Necas, meanwhile, reacted to Borissov's statements by
urging the country to keep its international obligations under
European law, including those regarding foreign investment
protection.
Bulgarian President Rosen Plevneliev called for an early
election on May 12 to reduce the fallout from the political
crisis that he said could undermine the country's economic
stability. ■
-Sonal Patel is POWER's senior writer. Look for more
Global Monitor stories associated with this issue online at
www.powermag.com.
April 2013 | POWER
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POWER April 2013

Table of Contents for the Digital Edition of POWER April 2013

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POWER April 2013 - Cover1
POWER April 2013 - Cover2
POWER April 2013 - Contents
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