The price of natural gas will be increased 23.89 per cent as of October 1 and another 21.4 per cent as of the beginning of next year. This emerged after a meeting of the National Council on Tripartite Cooperation on Tuesday.

"I believe we reached an agreement. In this way the increase is broken down into two steps," Economy and Energy Minister Peter Dimitrov said. One more meeting of the consultative body will be conducted to discuss compensatory mechanisms for the population, because the socially disadvantaged part of it should not suffer from this shock, Dimitrov said.

He said that assistance could be provided to families using gas and products thereof. An increase of central heating prices has not been discussed, but these are related matters, Dimitrov further said.

According to Dimitrov, employer organizations agree on the increase of the price of natural gas in two steps. He said that by the end of this year the price at which natural gas is sold in Bulgaria will remain lower than the price at which it is bought.

The Chairman of the State Commission on Energy and Water Regulation (SCEWR), Konstantin Shoushoulov, told journalists that the price increase will become a fact on Tuesday and the rate of increase will be determined at the consultative council meeting. It is possible that the price of heating will increase more than 12 per cent, Shoushoulov said. He said that on Monday the SCEWR submitted to the office of Deputy Prime Minister Ivailo Kalfin a proposal to amend the ordinance on the pricing of heating services, but it has not yet calculated the future increase of the price of heating.

The trade unions said they do not agree on the forthcoming price increase. Podkrepa Confederation of Labour President Konstantin Trenchev said he will ask trade union members about their opinion, and protests will be launched.

Confederation of Independent Trade Unions in Bulgaria Vice President Ivan Kokalov said the SCEWR decision may not enter into force if the trade unions challenge it in court. "If we manage to bring a lawsuit against the SCEWR and stop the increase, we will not protest; otherwise, mass strikes and protest parades will begin," said his colleague Valentin Nikiforov.

Earlier in the day, the Chairman of the opposition party Democrats for Strong Bulgaria and former prime minister Ivan Kostov said all parameters of the agreement with Gazprom on import of natural gas, signed by the Bulgarian Socialist Party, have worsened, which leads to a 26 per cent price increase from the conclusion of the contract. He blamed what he called "the bad contract" on President Georgi Purvanov and Prime Minister Sergei Stanishev.

MPs of another opposition party, the Union of Democratic Forces (UDF), were barred by officials of the Economy and Energy Ministry from familiarizing themselves with the contract between Bulgargaz and Gazprom, Martin Dimitrov MP of the United Democratic Forces (UtdDF) said after a joint meeting of the UDF National Executive Council and the UtdDF parliamentary group.

The UtdDF insists on clear rules for the conclusion of contracts which concern the whole country and on reconsideration of Bulgaria's energy strategy, said Ivan Sotirov MP. He said the 30 per cent increase of the price of natural gas will make the national economy uncompetitive and will lead to many company bankruptcies and growing unemployment.

Source: BTA