Topic: Energy & Utilities , Dispute Resolution

DGKV to represent ELEKTRORAZPREDELITELNI MREZHI ZAPAD EAD before the Court of Justice of the EU

DGKV has been entrusted to represent ELEKTRORAZPREDELITELNI MREZHI ZAPAD EAD (formerly CEZ RAZPREDELENIE BULGARIA) – one of the largest electricity distribution companies in Bulgaria[1], in Case C-310/2024 before the Court of Justice of the European Union.

 

The case was opened based on a Request for a preliminary ruling made by the Sofia Regional Court on five questions relating to the interpretation of Directive (EU) 2019/944 on common rules for the internal market for electricity, Regulation (EU) 2019/943 on the internal market for electricity (part of the so-called Fourth Energy Package) and Directive 2011/83 on consumer rights.

 

The main procedure was initiated by an electricity consumer against ELEKTRORAZPREDELITELNI MREZHI ZAPAD EAD. In essence, the claimant is seeking a declaration that he is not required to pay an electricity bill that is based on estimated consumption for the three months prior to the reading of an electrometer that was defective and therefore was not accurately recording actual consumption.

 

According to the Court, the Rules for Measuring Electric Energy, providing the national rules on pricing in case of defective electricity meters, applicable in the case, require further legal interpretations of the relevant EU acts on issues of:

  • how electricity prices are set;
  • the components that are to be included;
  • how the principle of energy efficiency is to be applied;
  • whether a consumer is required to pay the price for an estimated amount of electricity if the metering device has failed or has recorded consumption incorrectly and that has been caused by an external influence;
  • the proportionality of costs in the energy system and the duty for consumers to bear such costs, in view of the principle that the supplier/operator is to be provided with incentives to limit its losses.

 

It also considers the interplay between the principles of energy efficiency and protection of consumers, both protected on EU level, in a situation where the consumer did not cause the damage to the electricity meter.

 

The case is crucial not only because it is one of the few opportunities to interpret the rules of the Fourth Energy Package, but also given the immediate implications it could have for electricity distribution companies, suppliers, consumers and the functioning of the energy market.

 

The team at DGKV is being led by the head of Dispute Resolution and Arbitration Angel Ganev and consist also of the partners Anton Krastev and Valentin Bojilov and senior associate Delyan Dzhurov.

 

 

[1] Operating in ten regions of Western Bulgaria, covering an area of 40,000 square kilometers, with a population of nearly 3,000,000 inhabitants

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