PRICES OF ELECTRICITY AND HEATING WILL NOT RISE IF GAS PRICE GOES UP

The prices of electricity and heating will not go up if the price of natural gas increases by 4%, the Head of Energy and Water Regulatory Commission (EWRC), Ivan Ivanov announced on 11th of August, after a day earlier Bulgargaz (the sole public supplier of natural gas for Bulgaria) said there was an expected increase in the gas price. Ivanov also assured that the electricity prices would not go up after a few days ago the European Commission allowed the large consumers of electricity to pay lower “public service obligation” fee.

The reduction was set out in an Ordinance adopted by the government in response to the 2015 protests by the corporate community against the proposed increase of the ”public service obligation” surcharges, included in the electricity price.

By 10th of September, Bulgargaz is supposed to provide EWRC with its final proposal on gas price for the past 3 months.

Ivanov explained that after one year, the European Commission approved the Ordinance which allows the large industrial consumers of electricity to pay lower “public service obligation” surcharge, aimed to cover the losses of the state-owned power utility, NEK, accumulated from buying expensive “green” power.

However, it appeared that approximately 200 companies in Bulgaria would receive a lump sum compensation at a total value of 95 million BGN.

He added that they would get some money back because until now they had been paying the full size of the “public service obligation“ surcharge and now under the Ordinance, for a period considered from 1st of August 2015 until now and as of now, the companies will be given a discount of 40%, 60% or 85%, depending on the intensity of the generation.

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