site.btaRegulator Definitively Approves 11.31% Fall of Natural Gas Price in January

The Energy and Water Regulatory Commission (EWRC) has definitively set the price of natural gas in Bulgaria for January 2024 at BGN 77.60 per MWh (exclusive of access, transmission, excise duty and VAT costs). This is the price at which state-owned distributor Bulgargaz will sell natural gas to end-suppliers of gas and to heating companies, the regulator said in a press release on Monday.

The price is lower than the level in December 2023 by 11.31%. It takes account of the latest price-formative data provided by Bulgargaz, including international gas market quotations as at December 31. On December 29, anticipating the January price fall, EWRC Chair Ivan Ivanov commented: "The price cut for natural gas at the height of the heating season is good news for all Bulgarian consumers of the fuel."

Market demand for natural gas in Bulgaria will be met from three different sources throughout the month, the regulator said. The price mix for January includes the whole agreed amount of gas from Azerbaijan coming through the Greece-Bulgaria interconnector in accordance with the effective long-term agreement with Azerbaijan. This source will meet 40.33% of the month's domestic demand in Bulgaria and is key to achieving favourable gas prices, the EWRC said.

Bulgargaz has also signed a contract with a trader in the region for the supply of liquefied natural gas in January after a competitive bidding procedure in which there were requirements related to the minimum supply price and payment method.

The third source is the Chiren natural gas storage facility in Northwestern Bulgaria.

The secured amounts are enough to ensure that Bulgargaz fulfills its obligations, the EWRC said.