Bulgaria state gas company to rebate 202M leva to consumers

Bulgaria’s state-owned gas company Bulgargaz will rebate nearly 202 million leva, or about 103.3 million euro, to consumers as a result of the retroactive gas price cut agreed in March with its main supplier, Russia’s Gazprom Export.

The country’s Cabinet decreed after a special sitting on June 8 that the rebate would apply to customers on the liberalised market, as well as the regulated segment.

Although the government statement did not give further details, public broadcaster Bulgarian National Radio reported that the bulk of the money would go to Bulgargaz’ industrial customers.

Heavily-indebted central heating utility Toplofikatsiya Sofia would get the largest rebate, at 59 million leva, while chemical producers would get 53 million leva and glass-makers would get 16 million. Gas distribution companies were in line to receive 22 million leva.

Bulgargaz agreed the 40 per cent gas price cut in April, but the deal was backdated to August 2019. The agreement followed more than a year of negotiations in the wake of an European Commission investigation, which found that Gazprom abused its dominant position in eight central and eastern European members of the EU, Bulgaria among them.

(Photo: Jayesh Nair)

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