Bulgarian Industrial Energy Consumers Seek 22.7% Gas Price Decrease

Industrial energy consumers call for a reduction in the price of natural gas by at least 22.7% as of April, according to an open letter of the Bulgarian Federation of Industrial Energy Consumers to the ministers of economy and energy.

According to the letter, as cited by the Bulgarian Telegraph Agency (BTA), there has been no decrease in gas tariffs for industrial consumers in Bulgaria despite the fact that crude oil prices have plummeted to a 5-year low.

The current price is over BGN 600 per 1000 cubic meters of gas.

Prices of natural gas are

According to calculations of the BFIEC, regulated prices of natural gas in Bulgaria are close to the levels of 2008, when the price of crude oil reached USD 145 per barrel, while the current price of crude oil is nearly three times lower

According to the BFIEC, Bulgaria’s economy stands no chance of being competitive on global markets as a result of the huge difference in energy prices.

The Federation insists that state-owned gas supplier Bulgargaz EAD should take advantage of the successful risk-management models.

“We do not accept the explanation that the obligation to organize procedures required by the Public Procurement Act prevents the company from hedging the currency risk”, according to the letter.

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