NATURAL GAS AND HEATING PRICES TO INCREASE BY LESS THAN 10% IN OCTOBER

Natural gas prices will most likely increase by less than 10% in October, said yesterday President of the State Energy and Water Regulatory Commission (SEWRC) Angel Semerdjiev. SEWRC has not yet received the final figures, but expects Bulgargaz to reduce the requested increase of 20% after the forecasts for oil prices on world markets in September. The regulator plans to postpone part of the proceeds of Bulgargaz in order to avoid a sharp increase in fuel prices. 

Semerdzhiev added that if natural gas prices rise by more than 5%, it will affect the district heating prices as of October. The potential of the district heating companies will be used in order to avoid a price increase of the heating energy. 

SEWRC has launched the restructuring of the electricity distribution companies in the country - CEZ, EVN and E.ON. Their structures will be changed so as to comply with the third energy liberalization package of the EU. This means a seperation of the activities for distribution and delivery of electricity, explained Semerdjiev. He said this would boost the liberalization of the electricity market in the country. The changes are expected to be finalized by the end of the year. 

SEWRC's experts explained that the new prices for water, which were announced in June, would affect the price of electricity from the Kozloduy Nuclear Power Plant and the Water Power Plants. On Monday, officials from the Bulgarian Federation of Industrial Energy Consumers complained in a statement that the fees for industrial water supply from surface water had been increased by 275% and those for water supply from boreholes were up 700 times. SEWRC's experts explained that the changes in these prices would be included in the electricity price as of July next year.