Bulgaria’s utilities regulator decided on September 28 to raise gas prices in the country by 13.9 per cent starting October 1, citing the increase in oil and alternative fuel prices on world markets, as well as the fluctuations in the US dollar exchange rate.
Gas prices for the fourth quarter will be 456.65 leva for 1000 cubic metres (about 233.5 euro), the Energy and Water Regulatory Commission (EWRC) said in a statement.
This is the second consecutive double-digit gas price hike mandated by EWRC, following the 10.8 per cent increase in the gas price for the third quarter of the year.
Bulgaria’s gas market did not exhibit the necessary pre-requisites for a competitive environment, which is why the regulator sets quarterly prices, EWRC said. The price formula is set in Bulgargaz’ contract with Russia’s Gazprom.
The regulator estimated that the actual bills paid by end-consumers would go up by “under eight per cent”, because while the baseline price went up, the various shipping, distribution and access fees remained unchanged.
The increase in gas prices is likely to result in higher central heating and hot water prices, with EWRC scheduled to rule on that at a closed meeting on October 1.
(Photo: Marco Caliulo/sxc.hu)