State-owned company Bulgargaz has requested a 5% increase in the price of natural gas from April. The company said it currently has sufficient supplies of the fuel.
However, the Energy and Water Regulatory Commission (EWRC) has warned of a potential sharp rise in gas, heating and electricity prices from July, driven by the ongoing crisis in the Middle East. The warning was issued by the regulator’s chair, Plamen Mladenovski, during a meeting at which he heard from Bulgargaz’s management.
Gas pricing is subject to a time lag, with recalculations carried out every three months based on international market prices. This means that current increases are expected to have their most significant impact on prices in June.
That period is particularly sensitive, as it is when electricity and district heating prices for the next heating season are set.
Residents in the city of Ruse (Northern Bulgaria, on the Danube river), such as Mara and Stefka, say they cannot imagine further increases in electricity prices, as they are already struggling to make ends meet.
Mara Ancheva said: “As soon as I receive my pension, I first pay my bills, and whatever is left goes towards food and medicines. I prioritise buying my medication before food. We pensioners — not just me, but others too — eat twice a day. I don’t buy fruit because I can’t afford the prices.”
Stefka Georgieva added: “Do you know what it’s like at home? I sit in the cold and only switch on the electricity and light the stove after five hours. Do you know how much a cubic metre of firewood costs? Over 300 leva. And electricity — everything keeps going up and up.”
Stefka, who spent her life preparing baked goods, now has to cut back on food.
“I bought two leeks — one of them cost 0.71, three mandarins, 200 grams of spinach and five potatoes. In the end, I was short by €1.20. Honestly, I nearly cried. You go out with a certain amount of money, you feel like buying this or that, but you simply can’t afford it,” she said.
Although the price of natural gas in Bulgaria remains around 80% lower than on international markets, the chair of the Energy and Water Regulatory Commission (EWRC) has expressed concern.
Bulgargaz has proposed a 5% increase in gas prices from April
Plamen Mladenovski, Chair of the EWRC: “I am extremely concerned about what is happening with the new district heating prices in Sofia and with electricity prices from July. While we see changes in oil prices reflected immediately at the pumps, with gas the effects occur with a time lag.”
He explained that a recalculation of gas prices is expected in June, which will incorporate the current spike in oil prices.
“To allow energy markets to adjust to the new situation — whether it stops, continues, or eases — which we cannot influence, the process takes at least around a year,” Mladenovski added.
Bulgargaz’s director assured that the company has secured the necessary quantities for the country in April.
Veselin Sinabov, Executive Director of Bulgargaz, said: “At present, we are prepared and have ensured the required volumes.”
District heating companies and electricity suppliers must submit applications for new electricity and heating prices by 31 March, ahead of changes scheduled from July 1 which is the traditional date for price readjustments in Bulgaria.
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