The State Energy and Water Regulatory Commission (SEWRC) will conduct a regulatory audit of the three electricity distribution companies in Bulgaria - CEZ, EVN and E.on, SEWRC Chairman Konstantin Shoushoulov told journalists Tuesday.

The audit is routine and a competitive bidding procedure will be announced for a company to conduct the audit. It will have to have international authority and experience and should not work with the companies.

At today's public discussion of electricity prices Shoushoulov said that last year's profit of the electricity distribution companies was respectively 60 million leva for CEZ, 40 million

leva for EVN and 28 million leva for E.on. This shows that they are not in the bad condition they claim they are in.

Three-monthly accounting of spent energy has to be terminated as of July 1, Shoushoulov said, adding that this time CEZ will have to take the decision of the regulator in consideration.

The price for electricity transmission of the National Electricity Company (NEK) will be increased by 2.12 leva as it will also include the price of green energy, Shoushoulov also said. The aim is that all consumers of electricity pay for green energy, not just the regulated market. With this change the price of the energy mix from the producers will drop to 70.9 leva and the price for transmission will increase by 2.12 leva.

The clients of electricity distribution companies will be able to first appeal faulty electricity bills and pay them only after that. This will be set down in the new general terms and conditions of these companies, Shoushoulov said. Until now, electricity supply was suspended if a faulty bill was appealed and that bill was not paid in the course of the procedure.

A working group has been appointed to prepare the changes in the general terms so that a requirement for compensation of consumers in case of faulty bills may be introduced by the end of June. At this point it is not clear how the compensations will be calculated.

Electricity bills will also be changed to resemble EU bill more and allow consumers to calculate their bills according to consumption.

In addition, because the price of natural gas is lower than the forecast one, as of July 1 heating prices will either be reduced more or will not be raised as of October 1.

On May 10 Bulgargaz forecast the natural gas price for the third quarter of 2009 at 382.40 leva, or 21-22 per cent lower than the one valid now, while the company's application of yesterday was for a price of 356.03 leva, i.e. a price lower by 33 per cent, Shoushoulov said.

If prices are recalculated heating power prices will have to drop by another 10 per cent.

In turn, the Chairman of the Bulgarian Industrial Association Bozhidar Danev, who also took part in the discussion, said they forecast a sharp increase of unpaid electricity bills if electricity prices for business are not reduced in the way this is done across Europe.

Source: BTA