The State Energy and Water Regulatory Commission (SEWRC) will aspire to keep heating charges unchanged during the new heating season and not to have tangible changes in the natural gas prices, the new SEWRC Chair Angel Semerdjiev told a news conference on Tuesday.

According to Bulgargaz predictions, the price of natural gas is expected to rise 24.5 per cent as of January 1, 2010, Semerdjiev said. SEWRC estimates, however, that the increase will be within the limit of 10-15 per cent. Everything possible would be made not to have a tangible change in the natural gas price, he added.

There is a tendency of an increase of natural gas prices on the world markets, so a markup as of the beginning of next year is inevitable, Semerdjiev also said. Taking a question, he said the Commission will do its best so that the increase would not exceed 5 per cent as of July 1, 2010.

New renewable energy facilities will be plugged into the power grid in 2010 and this will lead to an increase of prices, Semerdjiev explained. In his view it is necessary to enhance the efficiency of conventional plants so as to curtail prices.

Liberalization of the electricity market may begin in Bulgaria already as of next year, the SEWRC Chairman said. In his view this should be a phased process beginning from the big consumers.

The gas market is not as well developed as the electricity one and this is due to the fact that Bulgaria depends on a single gas producer, Russia's gas giant Gazprom, Semerdjiev commented.

The two projects on the building of intersystem connections with Romania and Greece are of considerable importance for the diversification of gas supplies. Bulgaria will rely on EU financing of the projects as authorization of the extending of the funds is likely to be obtained by end-September or October. The implementation of the projects may actually begin by the year's end.

Source: BTA