Czech state-run company CEZ, which supplies power to western Bulgaria, reportedly intends to curtail the funds intended for infrastructure projects in the country in 2011, Reuters said, citing a source at the company's supervisory board.

Meanwhile, the utility told Dnevnik that presently it has no plans to cut the BGN 71 million investments envisaged in its regulatory programme for 2011, adding however that in case the electricity price is not increased in July, it may need to trim its infrastructure funding.

The utility will possibly curtail investments that are not extremely necessary, it noted.

CEZ' earnings have been enhancing for the last decade, but the lower industrial electricity consumption has forced the company to resort to a more restrictive investment policy.

The Czech state, the company's 70% shareholder, expects CEZ to distribute adequate dividends and to secure sufficient earnings to help it fund the pension reform and the planned environmental projects, which is the reason for its revised plans, the utility said, as quoted by Czech media.

In 2009, CEZ paid out CZK 20 billion in dividends to the government.

Currently, Bulgarian power consumers owe the company some BGN 75 million in unpaid bills.

CEZ has decided to embark on all legal measures, including power supply interruptions and filing lawsuits, in order to collect its claims.