Bulgarian Energy Watchdog Upbeat about Heating Prices

Prices of natural gas and central heating should not be going up in Bulgaria and even some slight decrease could be in place soon.

The forecast was issued Tuesday by Angel Semerdzhiev, Chair of the State Commission for Energy and Water Regulation (DKEVR).

He further reminded that after July 1 2012, the price of heating energy went down in a number of locations across the country, not because of the cheaper natural gas, but rather over new methodology tied with the decrease of specific expenditures of heating utilities.

Regarding natural gas prices keeping their level, the DKEVR Head also voiced optimism, however, he pointed out they would depend on data provided by Bulgargaz, which has uncollected revenues in the amount of BGN 150 M.

On Monday, Russian energy company Gazprom finally signed an agreement sealing the 11% natural gas price discount for Bulgaria.

Russia promised the discount on gas supplies for the Balkan country back in March 2012. The discount is tied to fast-tracking the South Stream gas pipeline.

Because of the early announcement, the discount was even taking into account in calculating prices effective April 1.

Natural gas prices went up by 5% on July 1, those of hot water in the capital Sofia – by 3%; the price of heating was reduced symbolically over the summer. Now, when the discount is a fact, DKEVR is taking a cautious stand with the vague forecast about stable heating prices.

Semerdzhiev also stressed the watchdog has no way to influence prices of importing natural gas in the country, and that it never upped a price proposed by an internal company, but had always reduced it. He added that currently prices of natural gas are way more favorable than those of alternative fuels.