The gas distribution holdings in Bulgaria work with a surcharge by 6,5% to 6,7% , while the surcharge by the Bulgarian state company “Bulgargaz” is only 1,5%, the company's executive director has announced.

The CEO of “Bulgargaz”, Dimitar Gogov, has shown the Bulgarian PM Boyko Borisov an analysis of how natural gas prices are formed in the country.

Borisov has given Gogov, the economy minister and the country's energy watchdog one week to come up with a presentation for the gas prices formation in Bulgaria.

The demand of the PM came as a result of the visit by Russia's First Deputy Prime Minister, Viktor Zubkov, who was astonished by the high prices of natural gas in Bulgaria.

About 95% of Bulgarian gas supplies come from Russia, but Zubkov claimed that Russia sells its gas to Bulgaria at prices considerably lower than those charged to the end consumer.

According to Zubkov, Russia sells natural gas to Bulgaria at an average price of USD 339 for 1000 cub. m, while private consumers pay around USD 576, and industrial ones USD 472-502 for the same amount.

On Wednesday, Gogov explained that about 67% of the natural gas price is formed according to the import price. According to data from “Bulgargaz”, one of the gas distribution holdings in Bulgaria has invested about USD 140 M in construction of gas distribution network.

However, according to Gogov, it was not certain that the money goes into this particular holding, which name he did not want to disclose.

Angel Semerdzhiev, chair of the Bulgarian State Commission for Energy Regulation (DKEVR), has also participated in the presentation for the formation of gas prices. He said that the reason for the increase of the prices was the low usability of the capacity of the network, which is about 12-15%.

On Tuesday, Semerdzhiev announced that no violations were present in the way prices for natural gas are formed in the country.

The “Bulgargaz” CEO also stated that the price at which his company is buying natural gas is high, but the price for the consumers is low.

He added that companies that sell under their cost price have to either undergo a reconstruction or sell their assets.

Gogov has once again confirmed that “Bulgargaz” wants to negotiate cheaper gas prices with “Gazprom” and stated that with the current contracts with Russia, “Bulgaria” is facing bankruptcy.

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