Bulgaria's Energy Watchdog Sets Q4 Gas Price Hike at 8.6%

Business » ENERGY | September 20, 2011, Tuesday // 12:32
Bulgaria's Energy Watchdog Sets Q4 Gas Price Hike at 8.6%: Bulgaria's Energy Watchdog Sets Q4 Gas Price Hike at 8.6% Angel Semerdzhiev, Chairman of the State Commission for Energy and Water Regulation (DKEVR), has said that the watchdog cannot possibly allow a 14% gas price increase, as demanded by Bulgargaz. Photo by BGNES

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!

Energy » Be a reporter: Write and send your article
Tags: gas prices, DKEVR, Angel Semerdzhiev, State Commission for Energy and Water Regulation, heating prices, heating utilties, Bulgargaz

Advertisement
Advertisement
Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria