Price of Natural Gas in Bulgaria Might Drop by 15%

The head of the Bulgarian Energy Regulation Commission, Angel Semrdzhiev, announced Friday that there is a possibility of a drop by 15% in the natural gas price in teh country. Photo by BGNES

The price of natural gas in Bulgaria might drop by 15% in September, the Energy Regulation Commission announced Friday.

The head of the Commission, Angel Semerdzhiev, said if the negotiations between Bulgaria and the Russian “Gazprom” go well, the price of natural gas might drop even before the heating season begins.

“There is a possibility of a drop in the prices. However, we have to wait for the result of the negotiations and the situation on the market in September. But a minimum drop by 15% of the price of natural gas is possible to be negotiated so that there is a balance in the interests of “Gazprom” as a provider and our interests as well,” Semerdzheiv said.

The position of the head of the Energy Regulation Commission on the intermediaries in the purchase of natural gas from Russia is that there should be an explanation what their purpose is.

“Gazprom” should explain why does it need intermediaries. We need to know exactly what their role is,” he said.

Last week Bulgaria's Energy Minister Traicho Traikov, demanded an elimination of the intermediaries with the reason that negotiations with Russia should be direct.

His statement came in the wake of a high-ranking meeting between Russian first deputy Prime Minister Viktor Zubkov and Bulgarian PM Boyko Borisov in Sofia, when Zubkov expressed his astonishment at high gas prices in Bulgaria and vowed to ensure lower sale prices of Russian gas in the nearest future.

As a result of Zubkov's statement, Traikov announced that the Energy Regulation Commission will analyze the natural gas prices of the gas distribution companies in Bulgaria “Obezgaz” and “BSTC” (Black Sea Technology Company). Energy experts will make audits in order to show whether the gas prices have been increased.

According to Semerdzhiev, however, the price of natural gas in Bulgaria is one of the lowest in Europe. In his words, 70% of the final price for customers is formed at wholesale supplying by the three intermediaries at Bulgaria's border, “Overgaz INC”, “Vintershal” and “Gazprom export”, which are controlled by “Gazprom”.

Semerdzhiev said that the rest 30% go for gas distribution and gas supply companies.

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