Mio LTD - Pazardzhik - Short Company profile

Natural gas prices to increase by 4.34% as of 2012 Natural gas prices will increase by 4.34% as of Sunday, January 1, 2012, the State Energy and Water Regulatory Commission (SEWRC) decided today. Thus, the fuel will cost BGN 620.16 per 1,000 cu m excluding VAT as of the New Year. SEWRC’s initial proposal was for a price hike by 4.54%, but the energy regulator found additional reserves allowing for a lower price rise. The state-run company Bulgargaz insisted on an increase of nearly 18% and said that if the present price rise is approved by SEWRC, it will demand a new hike by 20% as of April 1, 2012. Bulgargaz complained that it would post a loss exceeding BGN 70 mln for 2011. Until late last night, the report of the energy regulator was not posted on its website and, therefore, the motives for the new price of natural gas did no become clear. The Bulgargaz Executive Director, Dimitar Gogov, stated on BNR that he would appeal in court SEWRC’s decision on the price of gas. All such decisions have been appealed so far but without effect. Because of the smaller price hike of natural gas, central heating prices will not increase in the middle of the heating season. A week ago, SEWRC’s Chairman Angel Semerdjiev explained that the price rise would be compensated from the profits of heating utilities no price adjustment would be necessary. Businesses will also have a breath of fresh air because a gradual price increase of inputs is better for them than a steep surge for which the companies are not prepared. For the time being, it is not clear how SEWRC looks upon the request of the National Electric Company for a 4.5% increase in the wholesale price of electricity in the middle of the regulatory period.