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.

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Tags: BEH, DKEVR, Bulgargaz, Dimitar Gogov, gas price
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