site.btaEnergy Regulator Rejects Arguments for Proposed Rates Increase by Overgas Mrezhi Private Gas Supplier

The Energy and Water Regulatory Commission (EWRC) disagrees with private gas distribution company Overgas Mrezhi's motives to increase prices for its customers for the period 2023-2024, it became clear during Thursday's public discussion of a draft decision on the company's applications for the approval of prices for the supply of natural gas, prices for the transmission of natural gas through the gas distribution network and prices for the affiliation of customers to the gas distribution network for the period 2023 - 2024.

The Director of the Natural Gas Directorate, Milen Dimitrov, who is also part of the EWRC working group, explained that the regulation clearly states that price changes are possible, but it is regulated that an application must be submitted three months before the expiry of the price period. According to him, Overgas Mrezhi had submitted this application in March this year, while it should have done so in September 2022.

Overgas Mrezhi representatives disagreed with EWRC's opinion and said that they had asked for an increase in their rates to be able to continue providing high quality services to their customers and ensure the security of supply. They said the company's prices were around the market average. In addition, these rates are only about a quarter of customers' bills. 

Overgas Mrezhi is the largest private gas distribution company in Bulgaria. The company builds and operates gas distribution networks and sells natural gas to end users in 51 municipalities across the country, according to the portfolio of parent company Overgas. The Overgas Mrezhi network is more than 2,400 km long and reaches the homes of nearly 250,000 Bulgarian households. Overgas’ customers include over 60,000 families, over 3,000 manufacturing companies, hundreds of schools, kindergartens, hospitals and social care facilities.