Prosecutor’s Office Launched Investigation into Bulgaria’s Energy Regulator

The Specialised Anticorruption Unit of Sofia City Prosecutor’s Office initiated pre-trial proceedings in Bulgaria’s Energy and Water Regulatory Commission on 24^th of April. They are investigating officials of the regulator for alleged malfeasance in office, in several areas, one of which being lack of justification for the latest increase in the price of the natural gas.

For the time being, no charges have been pressed. The investigation will look into the work of the regulator since 2011 to date. It was initiated following an alert reported to the Chief Prosecutor in mid-January.

Agents from the State Agency for National Security are also working in the case.

The investigation is looking into the lack of control over the investments of the gas distribution companies which are directly related to the price of natural gas for end-consumers.

The investigation is also checking inaction by officials in relation to a complaint lodged against Bulgargas, which led to the initiation of an abuse of dominant position case before the European Commission.

Another subject to the investigation will be the merger of commercial corporations with Sofiagas (Subsequently Overgas Networks AD) in March 2015, more specifically whether EWRC actions in this regard have not led to keeping an unreasonably high sales price of the natural gas.

The prosecutors will also check for possible malfeasance in relation to the latest increase of the prices of gas, heating and hot water (for Sofia city) which resulted into a significant price hike for the end-consumers.