The State Energy and Water Regulatory Commission (SEWRC) could be allowed to amend the price for heating energy whenever it feels that it is necessary to adjust such, in accordance to changes in oil and gas prices from overseas suppliers. An amendment to this effect will be discussed in Parliament on November 27 2008, as reported by the governmental press service, quoted by Dnevnik daily.

It used to be that heating utilities’ prices could be adjusted once a year. This could all change now, as SEWRC is likely to receive the authority to adjust the prices whenever the prices of imported resources “rise significantly and, therefore, threaten the financial wellbeing of the energy companies or if the security of supply of those resources is in any way be threatened or impaired”.

In the contemplated amendment to the legislation it is indicated that simultaneously, as the prices of oil and gas change, SEWRC will be able to adjust the prices of energy in relation to the change of prices of the gas-grid network around the country.

The call for change was initialised by Toplofikatsiya and other energy companies around Bulgaria, who have been calling out for years for the government to amend the old law and make it possible for prices to be adjusted whenever there is change in world prices of the resources. As such, they will be able to compete with electricity distribution companies that have separate prices for energy distribution.

A fortnight ago, the cabinet postponed the implementation of the new amendment. The ministers then asked for SEWRC to give concrete and coherent explanation of what it considered “serious change in the price of imported resources” and what the corresponding adjustment would be from the company. According to a statement from Konstantin Shoushoulov, head of SEWRC, any soaring of the price equivalent to 20 per cent or more internationally would require immediate and according adjustment of the price of the service domestically.