News

20 March 2023

Ombudsman Diana Kovacheva sent a letter to the Chairman of the Commission for Energy and Water Regulation (KEVR) Ivan Ivanov, asking why, without public consultation, the regulator approved on 10 March this year the general terms and conditions for the sale of electricity of Electrohold Sales EAD. The Ombudsman also draws attention to the fact that as of 20 March 2023, no information about this has yet been published on the Commission's website, which violates the principles of publicity and transparency KEVR is required to observe in carrying out its activities.

Prof. Kovacheva believes that the procedure for approving the general terms and conditions of Electrohold Sales EAD did not comply with the law, which is evident from the working group’s Report with incoming No. Е-ДК-2048#1/10.11.2022.

The Ombudsman's arguments are that there was no public consultation pursuant to Article 14, paragraph 1 of the Energy Act, which states that “the Commission shall conduct a public consultation procedure with stakeholders when issuing general administrative acts provided for in the Act…”. She states that the decisions of KEVR on approving the general terms and conditions of companies are general administrative acts. In this sense is the uncontroversial case law.

“The public consultation held by the energy company is an additional stage of the procedure set out in Ordinance No. 3 of 21 March 2013 for licensing activities in the energy sector,” writes the public defender.

Prof. Kovacheva also emphasizes that the report of the working group did not establish compliance with the requirements of Article 148, paragraph 2 of the Consumer Protection Act: “When a regulatory act stipulates that a state authority approves the general terms and conditions of contracts with consumers and their subsequent amendments, it shall be sent to the Commission for Consumer Protection for an opinion on the presence of unfair clauses.” The state authority approves the general terms and conditions of contracts with consumers only if the Commission for Consumer Protection approves the general terms and conditions submitted to it and after establishing that they do not contain unfair clauses within the meaning of this chapter.”

She states that pursuant to the Energy Act the regulator shall approve the general terms and conditions set out in the Act and a mandatory condition for this is their approval by the Commission for Consumer Protection to ensure absence of unfair clause in the consumer contracts.