Energy minister expects an increase in prices of heating by several tens of percent

The prices of hot water and heating will rise significantly from July. This was predicted by Energy Minister Alexander Nikolov, who was heard by the Energy Committee in the Parliament on May 19.

According to the minister - the state will seek compensation for household clients.

The energy minister confirmed the industry's forecasts for an increase in the price of heating.

"When the price of natural gas is increased several times, no matter how heavy it sounds, an increase of several tens of percent is not something unexpected. Whether solutions will be sought to compensate consumers - for sure, this will be commented at the level of the Council of Ministers and Deputy Prime Minister and Prime Minister," Nikolov said.

The reduction of the VAT rate from 20 to 9% will also have a favourable impact on the price.

The Association of district heating companies predicts that from the first of July the price of hot water and heating will increase by between 30 and 50%. The main reason is the accumulated increase in the price of natural gas from the recent months and the fact that the prices of hot water and heating have not been increased for almost a year.

Nikolov also said that Bulgaria continues to give daily requests for natural gas supply to Gazprom, but does not receive fuel. Because of this, the storage facility in Chiren is at risk of not being filled.

“Bulgaria is still in an active contract with Gazprom export, the injection of the relevant quantities depend on the supplies under the long-term contract, it is very difficult to fulfill the function of both public supplier and injection," Nikolov said.

Bulgaria is also continuing negotiations with Turkey to connect to their gas system. The aim is to have another route for blue fuel supply. Nikolov did not answer unequivocally the question whether the supply of full quantities of Azeri gas to Bulgaria will start on July 1.

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