Gas prices and heating rates are expected to drop by 9.8% and 3-7% respectively as of January 1, according to estimates of the State Commission for Energy and Water Regulation (DKEVR).

The capital Sofia is expected to see the biggest decrease in heating rates, while smallest price cuts are due in Varna, Burgas, and Plovdiv.

The 9.8% gas price decrease approved by DKEVR at the end of December last year means that gas prices will drop by BGN 71.89 to BGN 656.47 per 1000 cubic meters of gas as of January 1, 2013.

Dimitar Gogov, CEO of state-owned gas supplier Bulgargaz, has comented that the company would see its revenues drop by BGN 3.5 M – 4 M in the first quarter of 2013 as a result of DKEVR imposing a gas price reduction of 9.8%, rather than 9.3%, as Bulgargaz had proposed.

Gogov explained that Bulgargaz expected to see its uncollected revenues shrink by BGN 5.5 – 6 M in Q1, 2013 from the current rate of BGN 160 – 200 M.

In his words the state-owned gas supplier does not see its clients as enemies but they are also not supposed to treat Bulgargaz as a donor.