Bulgaria: Cheaper energy in 2016, but price hikes expected in 2017

26. May 2016. / SEE Energy News

Professor Atanas Tasev said in the interview that the decrease of the gas price follows the trend of decrease of the price of alternative fuels, which comes with a delay of six months.

Energy expert, Professor Atanas Tasev said that already implemented and announced natural gas price cuts will lead to cheaper electricity and heating power in 2016.

However, according to him, the increase in price of gas is expected as of 1 January 2017. He explained that the decrease of the gas price follows the trend of decrease of the price of alternative fuels, which comes with a delay of six months. If the fact that oil prices in the world market have recently started to slightly increase is taken into account, by January 2017 the increase in gas prices could be expected, Tasev concluded.

He does not expect that the decrease in price of natural gas will have such proportional effect on the heating power price because the deficit accumulated by the district heating utilities is huge.

At the end of March, Bulgarian Commission for Energy and Water Regulation (KEVR) announced that the price of natural gas in the second quarter of 2016 will be 159.65 euros per 1,000 cubic meters (excluding VAT) or some 17.17 euros/MWh, which is 23.02 % lower than in the first quarter of the year. Previously, KEVR decided to reduce the price of natural gas in the first quarter of 2016 by 2.3 % compared to the price in the last quarter of 2015, transmits Serbia-energy.eu

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