02/12/12 17:15
(http://www.klassa.bg/)

Bulgargaz SPJSC demands a 27% increase in natural gas prices as of April


The state-owned company Bulgargaz SPJSC demanded a 27% increase in gas prices as of April 1, announced the company during the presentation of its forecasts. The shocking increase is predetermined by the oil price hikes on the Mediterranean market, as well as the higher dollar exchange rate to the Euro. If the forecast of Bulgargaz is approved by the State Energy and Water Regulatory Commission (SEWRC), as of April, natural gas prices will increase by BGN 166.27 per 1,000 cu m to BGN 786.43 per 1,000 cu m. A similar price hike will inevitably raise the price of domestic heating by at least 20% on average.

An additional reason for higher fuel prices is the fact that Bulgargaz SPJSC must restore its reserves of natural gas in the gas repository near the village of Chiren. The fuel stored there is only used in the winter season to cover domestic consumption and, this year, the gas volumes used are larger than usual because of the cold weather.

Bulgargaz representatives demanded a 17% increase of natural gas prices as of January but SEWRC estimated that the hike should be no more than 5% in order to prevent an increase in the price of domestic heating. Bulgargaz maintained that the regulations of the Commission resulted in the poor financial condition of the company. The company will submit its final request for an increase in natural gas prices on March 9. So far, SEWRC has never accepted the company's arguments and has striven to limit substantially the price hikes.

Meanwhile, Sofia DHC (District Heating Company) announced that January's heating bills for Sofia residents will be 17% higher month-on-month. The reason is the cold weather, especially at the end of January, when the average daily temperature reached minus 13 degrees. The company added that 65% of their customers will receive heating bills of less than BGN 150.

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