Financial and business news from Bulgaria

CPC started analysis of district heating companies and heat accountants

The Commission for Protection of Competition (CPC) has started a sectoral analysis of district heating companies and heat accountants. This is understood by a decision by the CPC of May 14, which was uploaded this week on the site of the anti-monopoly body.
The decision states that the CPC has established production for carrying out a sectoral analysis of the competitive environment of the markets for the production, transmission and supply of heat for domestic and non-domestic needs, as well as the related market of the equity distribution service and market for appliances for share distribution, on the territory of the country.

The Commission periodically monitors various markets and their

participants in order to examine the conditions of competition, the anti-monopoly authority recalled. In view of the degree of social and economic importance of the energy sectors, in particular heat supply, as well as taking into account that energy companies operate in the public interest, the CPC monitors the conformity of their conduct and the behaviour of the persons operating on vertically connected markets, with the rules and objectives of the LPC, complement the commission.

In the procedures examined by the Commission were the subject of analysis of several aspects of heat supply and related activities, as well as the compliance of the rules in force for each production with the rules of competition. In the field of antitrust, the Commission has repeatedly penalised the district heating companies for exploitative abuses of a dominant position by them, the CPC recalled.

From the information collected so far, the CPC cannot reach definitive conclusions about the impact of market forces on the behaviour of the enterprises involved in the central heat supply sector and the relevant effects on competition. Therefore, it considers that more detailed data should be collected, which should be analyzed in proceedings under Art. 27 of the CPC. In this way, a more thorough study of the competitive environment for the implementation of the activities in the heat supply sector in the relevant markets and submarkets will be carried out, the CPC's decision added.