Bulgaria: Bulgargaz will have to refund 103 million euros

, SEE Energy News

State-owned gas supplier Bulgargaz will have to refund almost 103 million euros to its customers, due to an agreement with Russian Gazprom on lower gas prices, Bulgarian Prime Minister Boyko Borissov said after the extraordinary Government session.

PM Borissov stressed that this agreement struck earlier in March is the main reason why wholesale gas price is now 52 % lower compared to a year before.

Of these 103 million euros, Sofia district heating utility will get some 30.7 million euros, gas distribution companies will get 11.2 million euros, chemical companies 26.6 million euros, while glass industry will get around 8.2 million euros.

Bulgargaz has already received a refund from Gazprom following the March agreement for a decrease of the gas price as of August 2019 by over 40 %, and now it has to distribute the money among its clients, who have paid the higher price applicable prior to the agreement. On 2 June, the gas company sent out draft agreements to its clients indicating how much it owes them for the period from 5 August 2019 to 31 March 2020, and has said that it is ready to make the payments before waiting out the statutory 14-day period from the signing of the agreements.