Bulgaria PM: CEZ To Be Stripped of License by End Tuesday

Bulgaria will revoke the license of the local unit of Czech power utility CEZ to operate the country's national grid by the end of the day, the prime minister said today. Earlier in the day Bulgaria's prosecutor office said it will propose revoking the license of the local unit of Czech power utility CEZ to operate the country's national grid. The statements came two days after tens of thousands of Bulgarians protested in more than 20 cities against high electricity bills. CEZ Bulgaria may be stripped of its national grid operator's license over systematic irregularities in its work, the prosecutors specified.

/Moderately negative, CEZ Group bought 67% stake in two distribution companies with combining 40% market share for 9 bln CZK. CEZ also owns 100% in power generator Varna producing of about 12% electricity in Bulgaria that has been bought for 6 bln CZK. In 9M12 CEZ made EBITDA of 1 bln. CZK in the two Bulgarian distribution companies, which accounts for roughly 1.5% of the group EBITDA in 9M12