Temenuzhka Petkova, minister of Energetics, said that citizens and businesses will experience the lower prices of Russian gas. This will enable bulgarian industry and business to be globally competitive and the effect will be felt on the whole economy.
Yesterday, Prime Minister Boyko Borisov announced that “Gazprom” would cut prices for “Bulgargaz” by 40 percent after seven months of negotiations, and the European Commission played a key role in these conversations. The Energy and Water Regulatory Commission will calculate the prices for each month separately after they receive the analysis of “Bulgargaz” for the consumption after August 5, 2019 until now.
Minister Petkova also explained that there is no option the district heating companies and the respective energy companies to make a profit or cover debts with the money back from the 40 percent reduction retroactively. She said the funds would be returned to consumers.
“You’re a consumer if you use gas. This is one situation where we first fall. Regarding the price of heat, it is determined by the regulator.”
The contract for the reduction of Russian gas prices is until 31 December 2022. A new price change may then be requested. Their definition will be made using a formula that includes a market element. The energy minister did not answer how cheap Gazprom’s supplies would be.
“At the moment, the price we were able to get under the contract with “Gazprom” is more competitive, extremely good… There was a period of time that our gas price was extremely good. However there has been a trend of an increase in this price since 2018. What we were able to do was renegotiate the formula which would determine the price of natural gas. What Bulgarians need to know is that so far this formula has been oriented only on the basis of the price of oil derivatives. The market element was missing at all.”
Translation: Diana Todorova
