site.btaRegulator Definitively Approves 1.9% Hike for Natural Gas in September

The Energy and Water Regulatory Commission (EWRC) on Friday set the price of natural gas for September 2024 at BGN 61.91 per MWh (exclusive of access, transmission, excise duty and VAT costs), which is an increase by 1.9% compared with August 2024, the EWRC press office said. This is the price at which state-owned supplier Bulgargaz will sell natural gas to end-suppliers and entities licensed to produce and transmit heating energy.

The regulator's decision is based on its analysis of the latest data provided by Bulgargaz relevant to the formation of the price.

The pricing mix includes the whole agreed amount of natural gas from Azerbaijan to be supplied in September via the Greece-Bulgaria Interconnector under a long-term agreement with the Caspian country. Azeri gas is forecast to meet 78.68% of gas consumption in Bulgaria next month and is important in ensuring a favourable price. Another source will be the underground gas storage facility at Chiren, Northwestern Bulgaria.

In its initial proposal on August 12, Bulgargaz asked for a price of BGN 59.54/MWh for September, down by about 2% from the August level. The price of BGN 61.91/MWh eventually approved by the regulator is higher than the initial proposal because the level suggested by the state-owned supplier was much more favourable than international market levels, which led clients on both the regulated and the free market in Bulgaria to ask for additional supplies. This increased the total amount of natural gas needed to meet monthly domestic consumption and pushed the price up, EWRC said.

The secured amounts of gas allow Bulgargaz to honour its commitments in September to end-suppliers and heating companies as well as industrial clients with which it has signed bilateral agreements, the press release said.