Fewer Households in Bulgaria Use Wood for Heating as Prices Rise and Supply Wanes

Business » ENERGY | October 6, 2024, Sunday // 09:09
Bulgaria: Fewer Households in Bulgaria Use Wood for Heating as Prices Rise and Supply Wanes @Pixabay

Fewer households in Bulgaria are relying on wood for heating. Although wood remains the preferred fuel source in mountainous and semi-mountainous areas, supply issues persist, particularly for elderly residents who struggle to split and store firewood. Asya Sarieva, an 88-year-old from the mountains, plans to heat her home with wood again this winter due to occasional power outages, according to a report from bTV. However, she notes that the cost of firewood has risen because she must pay extra to a private company for chopping and packaging it.

State forestry farms are currently selling firewood at 17% lower prices than last year, yet demand remains weak. Eng. Anatoli Elev, director of the State Forestry in Smilyan, attributes the reduced demand to last winter's mild temperatures, which may have led people to stock up on firewood. He mentioned that the price for one cubic meter of beech wood is 58 leva, including VAT, plus transportation costs that can range from 300 to 450 leva, depending on the delivery location. Softwood is priced at 48 leva, also inclusive of VAT.

Eng. Asen Karabov, deputy director of the South Central State Enterprise in Smolyan, reported that so far this year, their enterprise has sold 168,000 cubic meters of wood, supplying about 25,000 households. This marks a significant decrease compared to the same period last year when they serviced 35,000 households and sold 258,000 cubic meters. Overall, this represents about a 30% drop in sales compared to last year.

Despite the lower price of wood from state forestry farms, high transportation costs mean that heating expenses remain steep. Very few people are splitting timber themselves anymore, and those who require this service are charged an additional 150 leva per cubic meter. Households that do rely on wood for heating can expect higher prices for the upcoming heating season. Reports indicate that prices from state forestry farms will be about 8-10% higher than last year, contradicting earlier promises of a 20% reduction made by the Ministry of Agriculture.

Currently, more than 60% of Bulgarian households use wood and coal for heating, while less than 20% have central heating. The same proportion relies on electric heating, such as air conditioners. Among those using solid fuels, at least half rely on wood.

Data from the National Statistical Institute (NSI) indicates that there was a noticeable drop in firewood prices sold to individuals between the first and second quarters of the year. For instance, the price of coniferous wood sold by the root—where customers cut down the tree themselves—fell from 45.38 leva in the spring to 30.45 leva in the summer. However, last summer's price for the same wood was 27 leva, meaning that those buying in bulk for the entire season will pay around 10% more this year.

Nevertheless, this price only reflects what the forestry farms charge producers. According to the price list from Bolyarka State Forestry in Veliko Tarnovo, coniferous wood is sold at 74 leva per cubic meter. Hardwood is even pricier, with a producer price of 47.37 leva, up from 44 leva last year. The final selling price for hardwood exceeds 100 leva per cubic meter when cut and prepared for sale. Customers also need to consider transportation costs, as wood is sold at forestry warehouses, although the price decreases slightly if buyers can cut pre-marked trees themselves.

In contrast, technological wood, which is used in furniture and other industries, has experienced less price inflation compared to firewood, with some types even seeing a price drop, according to NSI data.

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Tags: Bulgaria, wood, heating

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