Bulgaria's Energy Watchdog Approves Up to 14.11% Hike in Gas Prices in Q1’09

Bulgargaz initially sought a 25.88% hike but then revised its demands to 21.31%. The regulator has proposed that prices rise by 11.79%.

As of January 1, the maximum price of gas will be raised by 76 levs per 1,000 cubic metres Value Added Tax, the State Energy and Water Regulatory Commission (SEWRC) said in a statement.

The revised price takes into account the weakening of the Bulgarian lev against the U.S. dollar and the lower international prices of natural gas alternatives gas oil and fuel oil in the past nine months, and the gas storage fees, the statement said. The new price includes Bulgargaz's 3.0% retail markup.

Bulgaria raised gas prices by 23.89% to 538.66 levs per 1,000 cubic metres Value Added Tax excluded in the last quarter of this year.

Bulgaria, which imports more than 85% of its gas from Russia, replaced in 2006 its deal with Gazprom for the supply and transit of natural gas through 2010 with a new contract that the government then said envisaged a gradual rise in delivery prices until 2013 and increase in transit volumes until 2030.

(1 euro = 1.95583 Bulgarian levs)