Bulgaria Revokes Charge on Solar, Wind Firms

Bulgaria's top court has revoked a 20 percent charge imposed on the income of solar and wind power producers this year, in a ruling that protects renewable energy investors in the Balkan country but would widen state deficits related to clean energy.

The Constitutional Court ruled the charge breached the constitution of the European Union member country, a statement on its website said.

The court had been approached by the Bulgarian president who said the charge breached the constitutional right for equal business opportunities, as it was imposed only on wind and solar power producers.

The Socialist-led government, which resigned last week, had imposed the charge as part its efforts to control politically sensitive electricity costs in the EU's poorest member.

Protests over high electricity bills - partly the result of investments in green energy - toppled the previous centre-right cabinet in February 2013.

Dozens of investors from Germany, Austria, the United States and South Korea had rushed to the Balkan country to take advantage of the generous subsidies for wind and solar energy. Their investment of more than 4 billion euros ($5.4 billion) has built 1,600 megawatts in wind and solar power installations.

Bulgaria regulates power prices for households and the subsidies have helped increase debt of the state-owned public power provider NEK to more than 2.9 billion levs ($2 billion).

Reporting by Tsvetelia Tsolova