site.btaNatgas Prices to Rise as from October 1 - Regulator Chief

Sofia, August 23 (BTA) - The price of natural gas will definitely increase, effective October 1, because the international market price of crude oil and the dollar exchange rate are rising, Bulgaria's Energy and Water Regulatory Commission (EWRC) Chairman Ivan Ivanov told journalists on Thursday.

He declined to comment on the exact amount of the hike. "The Commission has very little manoeuvring room. We must above all check the method of calculations and determine whether the price asked by Bulgargaz is consistent with their natural gas supply contract with Gazpromexport," Ivanov said.

He expects to receive Bulgargaz's final price application on September 10. The gas company now forecasts a 15 per cent increase of natural gas prices for the last quarter. The EWRC Chairman explained that the Commission will reckon with the application, but its experts will carefully analyze and check it and by the end of September the regulator will pronounce on the natural gas price as from October 1.

Ivanov pointed out that if the price of heat will have to be increased, this will happen at the start of the next heating season. He said that the EWRC has numerous instruments to impact the price of electricity, but it can do little about the price of natural gas, which in turn influences the price of heat.

Later on Thursday, the EWRC discussed an August 2 application by Bulgartransgaz for an increase of the cost component of the natural gas price for the period between October 1, 2018 and April 14, 2019 from 0.78 leva/MWh to 1.52 leva/MWh. The gas-transit and gas-transmission network operator also proposed a reduction of the 8 per cent adjustment for the 2018/2019 gas year so as to ease the financial burden on gas-transmission system operators.

Danail Dikov of Bulgartransgaz explained that the increase of the cost component was due mainly to a discrepancy in the forecast imbalances. He said that this is not supposed to lead to a shock rise in the price.

During the public discussion, most of the industrial uses of gas transmission networks opposed the proposed increase. EWRC Chairman Ivan Ivanov asked everybody to set forth their arguments in writing, so that the Commission experts can take them into account.

The EWRC will adopt its decisions at a meeting behind closed doors on September 14. RQ/LG
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