State-controlled gas distributor Bulgargaz has requested a 30 per cent price increase from October 1. On September 1, the company is due to power down the gas supplies to the district heating companies in Sofia, Bourgas, Pleven and Vratsa over unpaid bills.

According to the heating utilities, the pricing policy of the Bulgarian power regulator is to blame for the poor financial state of the companies in the sector. The regulator has approved a series of gas tariff hikes while the price of the heating is adjusted only once a year.

The power regulator said was not likely that it would approve the requested 30 per cent tariff hike unless Bulgargaz makes a very convincing case. All the gas tariff revisions proposed so far by the gas distributor have been reduced by the regulator before enforcement.

After the heating utilities, the second largest group of gas consumers in Bulgaria are the heavy industry companies.

According to representatives of the Bulgarian association of the metallurgical industry, an upward revision of gas prices towards the end of the year would have a negative impact on the investment climate in the country.

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