Delian Dobrev: The 20% reduction in the price of natural gas will save businesses $300 mln

The 20% price reduction for Bulgaria's natural gas supplies, which will come into effect in January 2013, will save businesses and consumers $300 mln next year, said Delian Dobrev, Minister of Economy, Energy and Tourism, during an economic conference in Sofia.

Dobrev added that the lower gas price that has been agreed with Gazprom will also show up in some form in heating bills. Bulgargaz has already submitted a proposal to the State Energy and Water Regulatory Commission (SEWRC), that, if accepted, will see gas prices drop by 9.3%, or BGN 660.64 per 1,000 cubic meters in the first quarter of 2013, Dobrev reminded. The 20% price reduction will have a positive effect on domestic output of natural gas, which will be 35% cheaper, since the state is striving to increase it. Domestic output is expected to total 490 million cubic meters in 2012. Thanks to the Devenci field, set to come on stream in the middle of next year, domestic output of natural gas should reach 574 million cubic meters in 2013.

Consumers will pay between 3% and 7.5% less for central heating and hot water as of January, announced SEWRC chief Angel Semerdzhiev. According to him, the price reduction for natural gas will be bigger than the 9.3% proposed by Bulgargaz, and the cost for central heating and hot water will drop by roughly the same margin in most Bulgarian cities.

In the capital, consumers will enjoy a 7% price reduction, said Semerdzhiev, reminding the public that all central heating utilities operate under certain economic models, Darik radio reported. The price reduction will be automatic, which means only one parameter in these economic models will be altered – gas prices. "We will have an objective result," commented Semerdzhiev.

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