Bulgaria minister wants lower power price increase

SOFIA, June 10 (Reuters) - Bulgaria's Economy and Energy Minister Petar Dimitrov urged the energy regulator on Tuesday to cut a planned 18 percent hike in electricity prices for households by 7 percent due to high inflation.

"We are aware about the record high jump in global fuel prices but we have to find all the possibilities to reduce the planned price increase to protect the Bulgarian people and ease pressure on inflation," Dimitrov said in a statement.

The European Union newcomer's energy regulator has announced initial ideas to raise electricity prices for households by an average 18 percent from July 1 and heating prices by 14 percent due to the surge in global oil and gas prices.

Higher energy costs have caused rises in power bill in many European countries.

But Bulgaria, the poorest EU nation, already struggles with double-digit inflation which has helped erode support for the Socialist-led government ahead of next year's election.

Dimitrov, who met the head of the state regulator on Tuesday, said the dominant state power utility NEK should lower by 10 percent its prices for distribution and access to its grids. Suppliers pass on these costs to end-consumers.

The minister also said that it was possible to cut an expected 20-25 percent increase in wholesale power prices by about 5 percent.

Power bills 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.

Czech CEZ (CEZPsp.PR) and Austria's EVN (EVNV.VI), leading suppliers to Bulgarian households, have said the planned increase of 18 percent was too low. (Reporting by Anna Mudeva)