Bulgarian State Gas Company to Request Price Hike

Bulgaria won't be receiving Azerbaijani gas before 2012, says Bulgargaz CEO. Photo by BGNES

The Bulgarian state gas company Bulgargaz is going to request a substantial raise in price of “at least 23%” before the end of this month.

This information was revealed Monday by Bulgargaz's CEO Dimitar Gogov at a press conference in Sofia.

The price change has to be approved by the State Commission for Energy and Water Regulation.

Last time the price of natural gas was updated (starting April 1) Bulgargaz had requested a hike of 26% but the approved price raise was just 5.88%.

Recently the director of the State Commission confirmed that the price of heating for Bulgarian homes might jump with 20-45% if there is a gas price change of 15-20%.

Bulgargaz's Gogov was resolute that the company will press its claims in court if it fails obtain the raise desired from the Committee.

“I am afraid to think what would happen if the state regulator doesn't approve the raise we request, because the financial state of the company is far from good,” added Gogov.

He also informed that starting July 1 Bulgargaz will temporarily discontinue filling the emergency gas repository at Chiren and that the process will be resumed as soon as the financial state of the company allows.

Gogov also revealed that there is no practical possibility for Bulgaria to obtain natural gas from Azerbaijan before the end 2012.

He further assured that there will be no problems with the amount of gas imported from Russia. Negotiations with the Russian Gazpromexport are “moderately optimistic and moderately pessimistic”, and there are still some disagreements, including strategic ones, that must be cleared Gogov said. He revealed that in the beginning of July a work group from the Russian side will visit Bulgaria to discuss the new gas supply contract.

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