Rising prices of natural gas will affect heating and hot water prices

The price of natural gas is expected to go up by almost 14% on 1 October. The chairman of the Energy and Water Regulatory Commission, Ivan Ivanov, assured that the price will not increase by more than 8% for the end users of natural gas. The 25^th of September meeting of EWRC discussed a report for approval of Bulgargaz's prices, at which the public supplier will sell natural gas to final suppliers and customers connected to the gas transmission network for the last quarter of this year.

The reasons for the 14% increase, according to Ivan Ivanov, are the high quotations of oil and its derivatives on the international markets, as well as the delivery price of the Russian side to Bulgargaz Transgaz, i.e. to Bulgaria. This will lead to an increase in the services of the district heating companies.

The projected increase in natural gas prices will affect the prices of heating and hot water, and it is expected that the bills for heating will go up between 3 and 9%. The increase will vary for different cities. No change in the price of heating from October 1 is expected in Rousse, Pernik, Sliven and Gabrovo, because the district heating compaies in these cities use coal.

But if the calculations are made in another way i.e. by how much the heating and hot water wil go up from the previous heating season compared to the current one, then the figures are different, showing a significant increase in the heating pricves in Bourgas - by 24% , in Pleven by 20%, in Sofia - by 16%.

According to the energy regulator, they do not have the tools to influence the price of gas.

Ivan Ivanov, Chairperson of the Bulgarian Energy and Water Regulatory Commission: The conditions with Bulgargaz and Gazprom Export should be renegotiated and I think that such negotiations should begin literally in the coming weeks. We have no instrument to influence prices. For consmers, whether household or business users, the price rise will be no more than 8%.

Ombudsman Maya Manolova said that the regulator should specify in more detail each of the pricing factors, focusing in particular on the gas prices of delivery to the gas transmission network gates.

The final decision on the gas price will be taken on September 28th at 10.00 am at a closed meeting of the regulator.

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