Gas Price: Bulgargaz Proposes 5% Increase in April

State-owned company Bulgargaz (the public supplier of natural gas in Bulgaria) has confirmed its forecast that the price of natural gas will increase by 5% from April. The company stated that it currently holds sufficient supplies and does not have immediate concerns about developments on international markets.

However, the Energy and Water Regulatory Commission (EWRC) expressed worry over an 80% surge in gas prices on international exchanges, warning that this is likely to result in higher heating and electricity costs from July. Yesterday, Bulgaria’s largest business organisations called for compensatory measures to offset the impact of rising electricity and gas prices.

Plamen Mladenovski, Chair of the EWRC, said: “For energy markets to adjust to the new situation — whether supply stops, is extended, or mitigated, which is beyond our control — the process takes at least about a year. I am extremely concerned about the new heating prices in Sofia and electricity costs. While changes in oil prices are reflected immediately at petrol pumps, gas price adjustments occur with a delay. Cargoes purchased at lower prices are currently en route to the respective countries, but once these are exhausted, the higher prices will apply.”

Veselin Sinabov, Chief Executive of Bulgargaz, added: “As you know, Bulgargaz signs annual contracts with its clients. Based on these agreements, we secure the necessary quantities. At present, we are prepared and have ensured that the volumes required under the contracts are in place.”

Tasko Ermenkov, a member of the EWRC, commented: “I am pleased that Bulgargaz has found a way to maintain prices which, while not necessarily favourable, are among the best in Europe on the regulated market. I hope we can sustain this until around June.”

Konstantin Stamenov, Chair of the Bulgarian Federation of Industrial Energy Consumers, warned: “If electricity producers generate excessive profits and drain the financial power of industrial enterprises, those enterprises will collapse, leaving only the power sector.”