Bulgaria's Energy Watchdog Plans Up to 11.79% Hike in Gas Prices

The State Energy and Water Regulatory Commission (SEWRC) will adopt a final decision next week after hearing Bulgargaz's motives for the demanded rise, it said in a statement.

Bulgargaz has said it seeks a hike by 114.80 levs per 1,000 cubic metres as prices in the last quarter of 2008 were lower than requested by the company. The requested hike reflects 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, according to the company.

Bulgargaz initially sought a 25.88% hike but then revised its demands.

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)