Energy Regulator Increases Electricity, Heating Prices as of July 1 As of July 1, the electricity price for household consumers increases by 2.03 per cent on average and the heating price by 7.33 per cent on average, the Energy and Water Regulatory Commission (EWRC) said Sunday. The new prices are effective until June 30, 2019. The increase of the heating price is linked to a raise of the natural gas price by 10.81 per cent as of June 29. Bulgargaz had requested an increase by 18.5 per cent. Emerging from an EWRC closed sitting on electricity and heating prices in the next pricing period, EWRC Chairman Ivan Ivanov told reporters that the electricity price will increase by 1,75 per cent for CEZ, 1.82 per cent for EVN, and by 2.78 per cent for Energo-Pro. The heating price will increase by 7.46 per cent for Toplofikacia Sofia, by 0.94 per cent for EVN Bulgaria Toplofikacia - Plovdiv, and by 4.89 per cent for Veolia Energy Varna, he specified. The detailed decisions are published on the EWRC website. Ivanov said that the new prices are based on clear economic logic. The energy regulator makes decisions based on four key principles: transparency, sustainability, compliance with the law, and equity. The EWRC strictly applies a conservative approach of not allowing abrupt changes in prices, as evidenced by the price raises in the last three years remaining way below the increases in the average and minimum wages, pensions, and annual inflation, he noted. The energy regulator also takes into account what the consumers can afford and, at the same time, the need of sustainable development of companies in the energy and natural gas sector, he added. Asked how the new heating price will affect consumers' bills, Ivanov said that heating is used by only 15 per cent of Bulgarian population; small town and village residents use wood, coal and electricity for heating instead of natural gas. That is why the most important index is the price of electricity, which the EWRC strives to increase as little as possible; however, the energy regulator cannot allow the energy distribution companies to experience severe financial difficulties, he underscored. Citizens protested against the new prices in front of the EWRC building on Sunday. Their posters read, "They are killing us with the electricity, water and heating! Will we pay for air as well?".
Source: Dnevnik (02.07.2018)

The responsibilities of Toplofikatsia-Sofia to Bulgargas The overdue liabilities of Toplofikatsia-Sofia to Bulgargaz rose to BGN 100 million, with the debt accumulated only from September last year to July 2018 being nearly BGN 52 million. This was announced by the executive director of the gas-supply company Nikolay Pavlov. Another BGN 27 million is also due by the district heating companies in Burgas, Pleven and Vratsa. This could make Bulgargaz's payments to its Gazprom supplier difficult, Nikolay Pavlov said. Toplofikatsia-Sofia should pay these overdue liabilities. We expect to pay BGN 40 mln by the end of July, and the rest of the BGN 52 mln accumulated in the autumn-winter season should be paid by the end of August," the head of the gas company said, according to whom the message is clear: “one should pay”. "If Toplofikacia does not pay, Bulgargaz will take action for the compulsory collection of the receivables,” Pavlov explained, adding that the Sofia-based company has been repeatedly warned that it has to pay for the delivery of fuel so that Bulgargaz does not have to collect through court.
Source: National radio (16.07.2018)

The CPC accused the Sofia heating system of misuse The Commission for Protection of Competition (CPC) accused Toplofikacia Sofia of abusing its dominant position and imposing unfair commercial conditions for the connection of sites. Since mid-2015, the municipal company has applied several unfair practices. The Commission considers that these unfair trading conditions are not justified by objective circumstances but are aimed at obtaining financial benefits. Within 30 days the company may submit its objections to the CPC. At the beginning of the year, the regulator issued a package of recommendations for the work of Toplofikacia-Sofia. The Antimonopoly Commission insisted on improving the accuracy of the distribution of the heat supplied by the company.
Source: Sega (10.08.2018)

Bulgargaz predicts a gas price jump of over 14% The state-owned company Bulgargaz predicts an increase in gas prices for the fourth quarter of the year from BGN 458.44 per 1000 cubic meters without access prices, transmission, excise and VAT rates. Compared to the current price, this represents an increase of 14.34%. The regulator will make the final decision on the new gas price on September 30th. According to the requirements of the Energy Act, a month before applying for a tariff change, Bulgargaz has to announce its intentions publicly. If the request for a price increase is approved by the KEVR, it will be the fourth consecutive one for this year. The 1 January increase was 2.75% (Bulgargaz requested 2.83%), it rose by 2.6% from April 1, while the state company's request was then 4.82%, and on July 1 the price was raised by 10.81% on demand over 15 %.
Source: Capital (13.08.2018)

Natgas Prices to Rise as from October 1 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.
Source: Capital (24.08.2018)

BEH took another EUR 50 million loan The state energy company Bulgarian Energy Holding recorded an increase of EUR 50 million on its third issue of Eurobonds, listed on the Irish Stock Exchange (Euronext Dublin) and on the Bulgarian Stock Exchange. Thus, the company's bonds reached EUR 600 million at an annual interest rate of 3.5% and a maturity of 7 years. With the second additional tranche, BEH achieved the planned bond issue and no further increases are foreseen. BEH maintains the same competitive price conditions and timeliness that will allow the company to spread its interest costs more efficiently and over a longer period of time. According to the company, "the second increase in the issue in continuing volatile market conditions confirms investor confidence in BEH as well as the company's good access to capital markets." BEH has a total of about BGN 3 billion in bond loans. These funds were mainly intended for the payoff of the subsidiary NEK. The company has to collect about BGN 2 billion from the energy companies, which it unites. Last BEH bought a debt of BGN 100 million of the Sofia District Heating Company (which is not part of the holding) to Bulgargaz, which is part of the state energy group.
Source: mediapool.bg (08.10.2018)

The government allowed the municipality to invest BGN 180 million in an installation at TPP Sofia The Sofia Municipality and Toplofikatsia Sofia will be able to invest up to BGN 180 million from the Operational Program "Environment" to build an incineration plant for processed waste at TPP Sofia after the Council of Ministers gave its permission. The total cost of the project for the installation will be BGN 370 million and the municipality will withdraw a loan from the European Investment Bank, which Toplofikatsia Sofia will pay back 19 years. At the same time, the company will save between BGN 12 million and BGN 15 million per year from gas supplies because it will use waste as fuel. It will also supply heat to 30,000 households and electricity to just as much. The construction of the incinerator is the third stage of the municipality's efforts to improve the waste utilization in the capital. The first two projects were the mechanical and biological treatment installations near Gorni Bogrov, known as the Garbage Plant. It is precisely in the treatment of the waste there and the separation of all non-recyclable materials, the RDF fuel being created, which will be burned at TPP Sofia.
Source: econ.bg (22.11.2018)