Bulgaria’s energy regulator will reduce the prices of heating

Bulgaria’s Energy and Water Regulatory Commission will reduce the price of heating after the end of the heating season from April. However, it is yet to be decided whether and how much compensation there will be for household consumer, if Gazprom returns to Bulgargaz money to gas purchased at higher prices. There is currently no legislative option to return money to household consumers.

New price for gas and heating every month will be the proposal by the state-owned company Bulgargaz to the Energy and Water Regulatory Commission.

Nikolai Pavlov, CEO of Bulgargaz: The idea is that the price reflects the market realities.

Bulgargaz plans to submit two proposals to the energy regulator by March 11 - to recalculate prices retroactively, as well as to offer a new price from April 1.

Nikolai Pavlov, Executive Director of Bulgargaz: For every month - August, September, October, November, December, January and February, there will be different price and the relevant reduction will be different.

The expected reduction from April 1 will be 40.3%. If the regulator approves it.

The energy regulator is expected to make a statement on the issue tomorrow.

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Russia’s Gazprom and Bulgaria’s Bulgargaz, the sole public supplier of natural gas for Bulgaria, agreed on a 40% reduction in the price of natural gas imported to Bulgaria, the Prime Minister said on March 3.

The price reduction is backdated to August 2019.

According to Initial estimates,150 million BGN with VAT will be returned to the industry because of the lower prices for the period August 5, 2019 – February 29, 2020, the Head of Bulgargaz, Nikolai Pavlov said.