Bulgaria raises home power, gas prices from July 1

EU

Bulgaria will raise electricity prices for households by an average 14% and wholesale gas prices by 5.15% from July 1 due to high global energy costs, the state energy regulator said on Thursday.

The regulator announced lower hikes than initially planned after the government urged it to take into account the impact on the already double-digit inflation in the poorest European Union country. Consumer prices hit 15% year-on-year in May.

Balkan neighbor Romania also announced on Thursday it will raise domestic gas prices by 12.5% and electricity prices by 5.3% on average from July 1, putting pressure on inflation. Higher energy costs have caused rises in power bills in many European countries.

Power prices are a politically sensitive issue in most central and east European countries, which have not yet abandoned a communist legacy of state control over households power and gas prices. Prices in the region are lower than in the western nations of the EU.

Some utilities warn that security of supply is threatened unless price rises do not take into account investment needed to upgrade grids and build new plants. Bulgaria’s gas monopoly Bulgargaz, which buys most of its gas from Russia, has said it will run losses in the Q3 of the year and supplies may suffer if the regulator rejected its demand for a 19.5% hike in prices. Czech CEZ and Austria’s EVN, leading suppliers of electricity to Bulgarian households, also say the increases are too low. (Reuters)

ADVERTISEMENT

Climate change hurts economy, but creates new business oppor... Analysis

Climate change hurts economy, but creates new business oppor...

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Dentons rehires banking and finance partner Appointments

Dentons rehires banking and finance partner

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.