It is a tradition for the Bulgarian Energy Regulatory to hike prices of heating in the spring. On the one hand, the public attention is engaged with the appreciation of eggs and lamb before Easter, on the other hand, the heating season has ended and heating bills are much lower than in winter.
Last week the Chairman of the State Energy and Water Regulatory Commission (SEWRC) Angel Semerdzhiev finally spilt the beans and said that as of April 1 a much more drastic appreciation of the heating prices may be expected than the initial announcement of a 7-8 percent rise.
For the formation of the price of natural gas, we should consider that the forecasts have not materialized and since the beginning of our year we have not have cheaper crude oil. The opposite happens and we are observing record high fuel prices as compared to the past few years. Furthermore the U.S. dollar, which we use to pay for natural gas from Russia, also increased its cost against the euro, which is reflected in the expenditure of Bulgargaz when it purchases the currency, Mr. Semerdzhiev pointed out.
The increase is unlikely to be as high as requested by the country’s main gas supplier, who asked for a 25.78% hike (appreciation by BGN159.90 to reach a price of BGN780.06 per 1,000 cubic meters, without VAT), but will surely be in the double digits. In such a situation the heating prices will automatically appreciate. The reason is that in determining the price of natural gas as from 1 January, the regulator allowed an increase of only 4.53 percent to avoid more expensive heating in the middle of winter. It is no secret that almost all central heating systems in the country use gas to produce steam and hot water, but if the increases of natural gas is contained within the 5 percent limit, it is assumed that the prices of heating cannot be touched.
According to Angel Semerdzhiev, the price of gas and heat are still subject to analysis before SEWRC produced its draft decision. This proposed decision will be submitted for public consultation. Moreover, the appreciation will be reflected differently by different heating companies in the country. In any case, all citizens having central heating at their homes will have an unpleasant surprise when they get their bills next winter.
