BULGARIA'S GAS PRICES TO GROW BY 9% IN OCTOBER

Natural gas prices will most likely grow by around 9% from October 01, said TuesdayAngel Semerdzhiev, Chairman of the State Commission for Energy and Water Regulation (DKEVR).

He also explained that the energy watchdog was seeking ways to introduce a single digit price increase while state-run gas supplier Bulgargaz insisted on a nearly 14% hike.

"We cannot possibly approve a 14% increase. We have been looking at various options since Friday and we have found two solutions for curbing the price growth- one is currency exchange differences, the other one being, if possible, the stockpiling of Bulgargaz' revenues for future periods", Semerdzhiev specified.

A 9% gas price increase, as estimated by DKEVR, would push up heating rates by different percentages across the country, with a 3-4% growth forecast for Sofia, theDKEVR Chair said, adding that he hoped that the price jump would remain the only one for the entire heating season.

According to Semerdzhiev, the threat of heating utilities running out of gas supplies in the winter season due to huge debts to Bulgargaz remains real.

"Heating utilities have improved their financial condition in a year but their levels of indebtedness to the public gas supplier remains the same", he stated.

The DKEVR Chair admitted that Bulgargaz was in an endangered financial condition but insisted that neither the state-owned company nor heating utilities were facing bankruptcy.

Gas and heating tariffs last went up early in July, with hot water adding an average 8% across the country and natural gas rising by almost 5%.