Gas prices and central heating tariffs will increase by an estimated 7-8% from April, according to Angel Semerdzhiev, Chair of the State Energy and Water Regulatory Commission (DKEVR).

In a Monday interview, he explained that central heating and hot water prices would increase by different percentages for the different companies.

In mid-February, state-owned gas supplier Bulgargaz suggested a gas price hike of 27% from April 01, but the energy watchdog countered that such a steep increase would not be necessary.

Semerdzhiev assured that a potential reduction in prices of Russian natural gas would be immediately reflected in local tariffs because the pricing mechanisms for the commodity was among the most flexible and provided for quarterly updates.

"As soon as there is a change in these contracts, this could be reflected immediately, or within the three-month period, or in the next quarter," the DKEVR Chair specified.

He told journalists that a potential reduction of about 10% of gas prices under the supply contracts with Gazprom, heating tariffs could remain unchanged for the next heating season.

Semerdzhiev said that he was not worried about the financial condition of Bulgargaz despite the amount of uncollected revenues.

The Chair of the energy watchdog was positive that the gas company would be able to finance the purchasing of natural gas to fill up the Chiren underground gas storage, which he said could also happen through a loan.

He suggested that electricity prices would rise by up to 10% from July 01, adding that the increase would be prompted by the cost of renewable energy and the launch of a new capacity of AES Galabovo.

Semerdzhiev noted that conclusive data on electricity prices would be available in end-May, assuring that end prices in Bulgaria would remain the lowest in the region.

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