The Commission for Protection of Competition (CPC) decided to allow Czech company CEZ acquire the Varna thermal power plant.

CEZ already owns the electricity distribution companies in Varna and Pleven, Darik Radio reported.

The CPC gave permission after analysing electricity production, trade and distribution in Bulgaria.

According to the CPC the Czech company still does not monopolise the Bulgarian market but its position would be strengthened after the completion of the deal.

The expected market expansion would limit CEZ's monopoly, the CPC said. In addition, the State Energy and Water Regulatory Commission would control prices.

The deal would lead to a number of positive developments, including the modernisation of the power plant, inflow of new investment in the energy market and production optiminsation, Darik reported.