site.btaEnergy Regulator Expects Price of Natural Gas to Drop by More than 30 Per Cent in Entire 2015

Energy Regulator Expects Price of Natural Gas to Drop by More than 30 Per Cent in Entire 2015

Sofia, August 27 (BTA) - The Energy and Water Regulatory Commission (EWRC) expects a drop of more than 30 per cent of the price of natural gas for the year, and by more than 13 per cent for the next quarter, EWRC Chairman Ivan Ivanov told reporters after open meetings of the Commission.

Preliminary estimates of Bulgargaz show that the price of gas should fall by 13.65 per cent in the next quarter. Ivanov said that, judging by the price of crude oil in the past ten days, the drop of the price of natural gas could be even bigger than projected.

Approached to comment whether the rule will apply whereby a drop by more than five per cent in the price of gas warrants a reduction of the price of central heating, Ivanov said "the rule exists". He said there is not a direct dependence between the percentage of the drop in the gas price and the ensuing reduction of the price of heating, noting that EWRC will come up with a decision on the matter.

Ivanov said also that a closed meeting of EWRC on Thursday approved the August 14 agreement between ContourGlobal Maritsa East 3 and the National Electricity Company (NEC) on amending an earlier agreement on purchase of power from the facility. This is one of the conditions for the August 14 agreement to enter force, Ivanov said, adding that thus, the regulator has honoured its commitments to the two US-owned power stations in the Maritsa East complex. Ivanov said that the next step is to invite a competition for selecting a lending bank for NEC's debts to the power stations.

Ivanov said that on September 30 EWRC will reconsider the price model for the power from biomass.