Bulgargaz Proposes 18% Reduction in Natural Gas Prices
"Bulgargaz" suggests an 18% decrease in natural gas prices starting next month
HOT: » Assessing the Legacy of Bulgaria's "Denkov" Cabinet: Achievements, Failures, and What Comes Next
The price of natural gas in Bulgaria for the fourth quarter will be increased by 8.6%, according to a report of an expert work group of the State Commission for Energy and Water Regulation (DKEVR).
The announcement comes on the backdrop of State-run gas supplier Bulgargaz requests for a nearly 14% hike.
The DKEVR experts say that the Bulgargaz' sale gas price for end suppliers and consumers in the gas network should be BGN 605.15 for 1 000 cubic meters without Value Added Tax (VAT). The increase, compared to the third quarter of 2011 will be by BGN 47.93 for 1 000 cubic meters or 8.6%.
Two weeks ago, Bulgaraz asked to sell, beginning October 1, gas on the local market for BGN 634.44 for 1 000 cubic meters without VAT which is by BGN 77.22 more than the price determined currently by the watchdog. DKEVR said then that they would not allow anything above 10%.
"We cannot possibly approve a 14% increase. We have been looking at various options and we have found two solutions for curbing the price growth - one is currency exchange differences, the other one being, if possible, the stockpiling of Bulgargaz' revenues for future periods", the DKEVR Chairman, Angel Semerdzhiev specified one week ago.
A 9% gas price increase, as estimated by DKEVR, would push up heating rates by different percentages across the country, with a 3-4% growth forecast for Sofia, the DKEVR Chair said, adding that he hoped that the price jump would remain the only one for the entire heating season.
According to Semerdzhiev, the threat of heating utilities running out of gas supplies in the winter season due to huge debts to Bulgargaz remains real.
"Heating utilities have improved their financial condition in a year but their levels of indebtedness to the public gas supplier remains the same", he stated.
The DKEVR Chair admitted that Bulgargaz was in an endangered financial condition but insisted that neither the state-owned company nor heating utilities were facing bankruptcy.
Gas and heating tariffs last went up early in July, with hot water adding an average 8% across the country and natural gas rising by almost 5%.
DKEVR further inform Tuesday that currently uncollected revenues or surplus in revenues of Bulgargaz cannot be taken into account when forming the new price because some of the data is preliminary.
The determination of gas prices for the fourth quarter will be discussed by the DKEVR Consultative Council Wednesday.
We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!
A remarkable shift in Bulgaria's energy landscape has been unveiled in the latest report from the Commission for Energy and Water Regulation, submitted to the Bulgarian parliament
Natural gas prices in Europe experienced a significant spike, surpassing 2% to reach 29 euros per megawatt-hour (MWh) on Monday
Amidst Ukraine's urgent need for additional power sources following the closure of the Russian-controlled Zaporizhzhia nuclear power plant
Bulgarian lawmakers have taken a significant step toward bolstering the nation's energy infrastructure by advancing cooperation with the United States for the construction of Units 7 and 8 at the Kozloduy Nuclear Power Plant
The Bulgarian Parliament has ratified the Agreement between the Government of the Republic of Bulgaria and the Government of the United States on cooperation regarding the construction of nuclear power at the Kozloduy Nuclear Power Plant
During a forum in Alexandroupolis, US Assistant Secretary of State for Energy, Jeffrey Payatt, highlighted the significance of a gas pipeline project through Bulgaria as the next pivotal step for energy development in the region
UN Happiness Report: Bulgaria's Astonishing Leap in Rankings
Bulgaria: 3 Regions With Lowest Life Expectancy - EU Report 2022