A working group set up by the Bulgarian Economy Ministry to investigate the handling of gas transit fees by Bulgargaz and Bulgartransgaz has recommended a regulatory penalty for the two companies for breaches of their respective licences, sources from the working group told Dnevnik.

The check was ordered by Economy Minister Petar Dimitrov after Bulgartransgaz executive director Angel Semerdjiev asked the prosecution authorities to investigate if the agreement between trader company Bulgargaz and the transmission company on the collection and distribution of fees paid by Russia's Gazprom for the transiting of its gas via Bulgarian territory violated the energy law.

The agreement puts the trader in charge of the collection of the fees instead of the transmission company, as is required by the gas directive.

Last week, Konstantin Shoushoulov, chairman of the State Energy and Water Regulatory Commission, admitted indirectly that the fees should be collected by Bulgartransgaz and not by the trader. At the time, the official said the ministry was tackling the problem.

State-controlled gas distributor Bulgargaz has been restructured and since then the regulator has not checked the implementation of the licences it has granted.

Several sources said the two gas companies would most likely avoid a penalty because the regulator would opt to instruct them how to align their business relations to the relevant laws. That would entail the signing of a new agreement, putting the transmission company in charge of the fee collection.

The working group has also discussed the possibility to terminate the agreement between the two companies, an option that Bulgargaz claims would plunge it into financial crisis.

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