The State Energy and Water Regulation Commission in Sofia started a license revocation procedure against CEZ, the regulator said on its website. The decision was taken late yesterday, after Prime Minister Boyko Borissov said the permit will be revoked earlier in the day to quell anti-government protests triggered by high energy bills. The license cancellation “is a very long legal process” and can be appealed, the regulator’s spokeswoman Ralitsa Stoyanova said. It involves appointment of a “basic manager in the company who will be tasked to seek another company to give the license to.” /Slightly negative, CEZ Group bought 67% stake in two distribution companies with combining 40% market share for 9 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. The company has already written down all goodwill worth 1 bln CZK in 2010. Book NAV of CEZ distribution activities in Bulgaria is roughly 5 bln. CZK. It seems the process of revocation will take long time with uncertain result.
Czech PM Necas said in a press release today he expected Bulgaria to keep its international obligations as well as the investment protection agreement in its dispute with Czech power utility CEZ. The problem of high prices of electricity in Bulgaria is politicised and statements by Bulgarian representatives regarding CEZ are "non-standard," Necas said. He added that he wanted to discuss the situation with CEZ CEO Daniel Benes. Industry and Trade Minister Kuba said he intended to discuss the situation in the European Commission.