Bulgarian Regulator: No Violations in Gas Price-Formation

Bulgarian state energy regulator chair Angel Semerdzhiev at Tuesday's sitting of the commission. Photo by BGNES.

Тhe Bulgarian State Commission for Energy Regulation's chair Angel Semerdzhiev announced Tuesday that no violations are present in the way prices for natural gas are formed in the country.

The commission launched an investigation on gas price-formation at the request of Bulgarian PM Boyko Borisov, after Russian deputy-PM Viktor Zubkov expressed last week dismay at gas prices in Bulgaria during an important visit to Sofia.

Thursday Semerdzhiev is going to present the full report to PM Borisov.

Later last week energy minister Traicho Traikov requested a full regulatory audit of gas distribution companies, and the commission has already started steps on the procedure.

Semerdzhiev said gas distribution companies are sometimes selling gas even below the price they are officially allowed by the regulator.

According to Semerdzhiev a big problem for gas distribution in Bulgaria is the fact that companies maintain and pay fees for an extensive distribution network, but service comparatively few consumers.

Semerdzhiev pointed out a couple of option for cutting down gas prices, including changing the way depreciation discounts are calculated, optimizing consumer groups, and reviewing the rates of return.

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