In parallel with the prices of gas, electricity prices are going down, about 2 to 2.5 per cent for households in the various regions. The news was released Wednesday by State Energy and Water Regulatory Commission (SEWRC) Chairman Konstantin Shoushoulov, speaking at the Energy Forum 2009 which opened in the Black Sea port of Varna. There is no rise at all in the prices for large electricity consumers - they are on the free market and they can operate there, Shoushoulov added.

The forum, organized by the Scientific and Technical Union of Power Engineers in Bulgaria, the Ministry of Economy and Energy, the Energy Efficiency Agency, the Federation of Scientific and Technical Unions in Bulgaria and the Sofia-based Technical University, is attended by 280 participants, including 60 from abroad.

All demands of electricity distributors for increases will not be approved and they have already agreed to that, Shoushoulov went on. The prices of cogeneration become exceptionally low with the reduction of natural gas prices and there is no danger for the national electricity company NEK to lose. In addition, NEK should not complain so much because it has a good profit for 2008 as a result of good electricity exports, he pointed out. In his opinion, current exports are also at a good level and even though prices in the region have dropped as in all of Europe this does not stop NEK from trading well.

The Chiren gas storage facility is nearly full and if supplies are cut it can provide normal supply of the country's gas distribution system for two months, Shoushoulov said, referring to the January crisis with Russian gas supplies. Additional quantities of gas will be pumped in in the fall, so that the facility will be full for the winter season.

Meanwhile, Overgas natural gas company said that the costs of Sofiagas EAD industrial consumers will be reduced by 1,830,000 leva because of the cheaper natural gas. The calculations were made on the basis of the SEWRC report of expected drop in natural gas prices of slightly over 33 per cent as of July 1, 2009.

End-users of the capital's gas distribution company will pay217.13 leva less for every 1,000 cu m used natural gas. In respect to the industrial sector, 1 KWh of natural gas generated energy will cost between 0.058 and 0.074 leva, depending on their consumer tariff plan.

Source: BTA