A DRASTIC PRICE INCREASE IN NATURAL GAS AND HEATING EXPECTED AS OF APRIL 1 DUE TO HIGH OIL PRICES

NEK has still not rescheduled its loan from the French BNP Paribas granted for the NPP Belene project

As of April 1, natural gas prices will increase more than the previously projected 8%. This became clear from yesterday's statement of the Chairman of the State Energy and Water Regulatory Commission (SEWRC), Angel Semerdjiev. Unlike other times, he refused to comment on the expected price hike. However, he acknowledged that oil prices have reached record-high levels on international markets, while the projected cheaper quotes have failed to materialise. Another reason for the shocking increase is that the US dollar exchange rate to the Euro has also increased. These are the two main parameters which determine gas prices in our country.
The state-owned Bulgargaz SPJSC has already requested a price increase of 25.78% as of April 1. If this proposal is adopted, the price of natural gas in Bulgaria will rise to BGN 780.06 per 1,000 cu m, VAT excluded. The expected price increase will be BGN 159.90 more than the current price. So far, no case has been reported in which the State Energy Regulator has accepted completely the proposal of Bulgargaz but, last year, SEWRC approved the gas price increase of some 20%.
Currently, the proposal submitted by the gas company is being analysed and, within two weeks, the estimated price increase is expected to become clear, explained Semerdjiev. Furthermore, SEWRC explained that, next month, subscribers will inevitably face a price hike in heating and domestic hot water. It will be caused by the expected drastic price increase in natural gas because all district heating utilities are gas-operated.
The National Electricity Company (NEK) has not yet rescheduled the disbursement of its loan of €250 mln owed to the French BNP Paribas. The loan was borrowed for the construction of NPP Belene and the principal is due to be paid in May. NEK representatives are holding negotiating with the French bank and, last month, the head of the company, Mihail Andonov, stated the talks were already coming to an end. The disbursement of the loan is expected to be deferred for one year and SEWRC must approve the extension of the deadline.