Energy regulator changes the gas price increase rate from 1 April

The price of natural gas will rise by between 13% and 20% from 1 April, according to preliminary estimates of the Energy and Water Regulatory Commission. An increase in the price of heating and water is expected.

The Energy and Water Regulatory Commission has reduced the initial forecast of public supplier “Bulgargaz” for a 58% increase in gas prices to 13.35%.

This price will be fixed tomorrow, but I hope there will be no fluctuations between today and tomorrow, chairman of the energy regulator, Stanislav Todorov, said.

However, that is exactly what happened, the price on international markets a few hours later went up by 15% and the EWRC is likely to increase the gas price by nearly 20% from April 1.

According to estimates by Bulgargaz, the increase will be even higher.

It won't be confirmed at 58%, it will be dramatically less, but we will see. The increase will most likely be in the range between 20% and 30%, said Ivan Topchinskiy, Head of Bulgargaz.

According to estimates of the Association of heating companies in the country, this would lead to increase in the price of heating and hot water from May by between 13% and 50%. The reason is that natural gas is once again becoming more expensive. Since the beginning of the heating season alone, the increase is by 65%. There will also be an increase in the price of water.

We will have different pricing solutions and different pricing conditions for different water and sewerage companies and different heating companies, adds Stanislav Todorov.

Natural gas was commented at today's government meeting, but not its price, but the possibility of stopping supplies from Russia. Bulgaria's Plan B envisages alternative supplies through future connections.

We are completing the connection with Greece from where there is a large capacity that can be used for additional supplies of Azeri gas, and also through our connection with Turkey, said Council of Ministers spokeswoman Lena Borislavova.

Our country will continue to pay for the gas in advance as agreed, Borislavova further assured.

The government's position, which is coordinated at the European level, is that no violation of the current contracts will be allowed, which clearly stipulate that payments will be made either in euros or in US dollars, Lena Borislavova added.

In the short term, gas has also been secured from the storage in Chiren, where a larger than planned amount will be extracted. "Bulgargaz” is negotiating with other suppliers.

“With companies that are from different countries, there are from the United States, there are from Qatar, there are from Nigeria, from almost everywhere, it is a very diverse mix, said Ivan Topchiski, chairman of “Bulgargaz” management board.

And while the government is deciding where to source natural gas from, businesses are facing difficulties over its price. One of the largest glass factories in the country is located in Plovdiv and expects the state to support the business as it happens in other European countries where the company also operates.

In 2020, our gas costs were around BGN 19 million, in 2021 the same amount of production already cost BGN 44 million, our expectations for 2022 are to pay for gas around BGN 100 million, said Javier Taniente, Managing Director for Southeast Europe of Glassworks.

Energy costs take up about 15% of the cost of production.

The only solution is to increase the price, but there are limits. that's why we want the Bulgarian government to support us, what the other countries in Europe are doing, among them Greece and Romania.

The final gas price will be set on 1 April.

Чуйте последните новини, където и да сте!
Последвайте ни във Facebook и Instagram
Следете и канала на БНТ в YouTube
Вече може да ни гледате и в TikTok
Намерете ни в Google News