Bulgaria Bulgargaz Unwavering about Price Hike

Business » ENERGY | March 25, 2010, Thursday // 13:54
Bulgaria Bulgargaz Unwavering about Price Hike: Bulgaria Bulgargaz Unwavering about Price Hike The CEO of “Bulgargaz'” Dimitar Gogov, insists that freezing gas prices would be detrimental to the company and those prices will have to jump by 30% next year. Photo by BGNES

The CEO of the Bulgarian gas supply company “Bulgargaz,” Dimitar Gogov, declared the company cannot keep prices below the 26% hike requested by them.

Bulgargaz is asking to increase gas prices by 26% beginning April 1, while the State Commission for Energy and Water Regulation (DKEVR) proposes a 15% increase.

The Bulgarian Energy Holding (BEH), of which Bulgargaz is the daughter company, is the authority that would be crucial in determining gas prices. BEH say the only way to keep heating prices at the current level, despite gas prices going up, is to increase the latter only by 2% - 3%, adding increasing the Holding's capital has never been put on the table as an option.

According to Bulgargaz, if prices are frozen now, the cash flow of the company will suffer and next year prices will jump by 30%.

On March 29, DKEVR will hold a meeting behind closed doors to decide on gas prices, after talks with BEH to examine ways to avoid the price hike.

“Gas prices will be decided by DKEVR, but I can only say the price of gas we purchase under our contract is going up,” Gogov insisted.

By the end of February, Bulgargaz reported losses in the amount of BGN 12,5 M and payments yet to be collected in the amount of BGN 90 M. 60% of all debt to Bulgargaz belongs to the Sofia Heating Utility.

Meanwhile, a laud protest rally of several hundred people took place in downtown Sofia Thursday, in front of the DKEVR building. The rally was organized by the nationalist VMRO party.

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: BEH, DKEVR, Bulgargaz, Dimitar Gogov, gas price
Expats.bg All Are Welcome! Join Now!
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