It is most distressing that the focus of investment programmes was creating new production capacities, under a business plan not approved by SEWRC
at that, and not investment in the grid," Semerdjiev was quoted as saying by news website Mediapool.
The practice to outsource most of their operations to vertically-integrated subsidiaries was a breach of the licences awarded by SEWRC and had created the premises for "artificial, non-competitive, nontransparent and unjustified increase of the costs of the audited companies", the regulator said.
SEWRC said that the three distribution companies--owned by Austria's EVN, Czech CEZ and Germany's E.
ON Bulgaria chose to comment on the substance of the report's summary published by SEWRC.
But the company would not go into further details, saying that it would only comment on all the conclusions of the report once it received the report itself and that it planned to give full feedback to SEWRC, the Cabinet and any other state institution.
Without the full report, the summary published by SEWRC creates the premises for speculation and interpretations that EVN Bulgaria does not wish to be a part of.
As soon as we receive the full report and become acquainted with its contents, we will call a news conference to answer all questions related to pricing and SEWRC decisions, the audit and our work in Bulgaria and elsewhere in Europe.
Despite its powers after the privatisation of the three power distribution companies in 2004, SEWRC never carried out a single regulatory audit of the companies.
SEWRC also took into account the higher price of nuclear fuel used by Kozloduy station.
Given that price inflation, SEWRC had to cut some costs elsewhere to prevent a big hit on end-users and the target of its efforts became the power distribution firms.
In layman's terms, having seen NEK's poor state, SEWRC raised the company's revenues.