Bulgaria's Gas Supplier Requests 9.3% Price Cut for Q1, 2013

State-owned gas supplier Bulgargaz has requested a reduction of 9.3% in prices of natural gas in the first quarter of 2013.

Bulgargaz has already submitted its Q1, 2013 proposal with the State Commission for Energy and Water Regulation (DKEVR), according to the press office of the state-owned company.

Bulgargaz seeks a price of BGN 660.64 per 1000 cubic meters of gas, excise duty and VAT excluded.

The reduction amounts to BGN 67.70 per 1000 cubic meters.

The tariff proposal includes a 2% markup for reimbursing Bulgargaz for uncollected revenues.

Bulgargaz's proposal envisages a reduction in gas prices for the first time in years, investor.bg notes.

The gas price decrease scheduled to take effect on January 1, 2013, was made possible by the discount stipulated in the new supply contracts with Russian Gazprom.

DKEVR is to review Bulgargaz' motives and to announce gas prices in Q1, 2013.

At the end of last week Dimitar Gogov, CEO of Bulgargaz, commented that the company would seek a reduction in gas rates by around 9%.

He cited Toplofikatsiya Sofia, the heating utility in Bulgaria's capital, as one of the biggest debtors of Bulgargaz.

Gogov informed that Toplofikatsiya Sofia owed over BGN 167 M to Bulgargaz.

The CEO of the state-owned gas supplier explained recently that the company had prepared new contracts for its customers in a bid to reduce the debts.