Bulgaria’s utilities regulator approves 18,7% rise in natural gas price from December 1

Bulgaria’s Energy and Water Regulatory Commission (EWRC) increased the price of natural gas by 18.7% to BGN 146.09 per mWh, the regulator said on December 1. This is slightly less than the proposal of the state-owned company Bulgargaz.

"After checking all the costs for purchasing natural gas, the Commission adjusted the price proposed in today's application by Bulgargaz and reduced it from BGN 146.83 per mWh to BGN 146.09. It has been established that the proposed price unjustifiably includes costs of BGN 2 454 017 for the supply of volumes to Virtual Trading Point Bulgaria. These costs have been deducted from the total costs of the public supplier for the purchase of natural gas, which form the price for December 2022," the regulator explained.

There are two main reasons. The gas that has to be taken from our only storage facility in Chiren is very expensive and secondly there is an increase on international exchanges.

"The regulator has found that the total projected quantity for the domestic market has been secured from several different supply sources. The pricing mix includes the entire contracted quantity of Azeri natural gas supplied through the Bulgaria-Greece Interconnector /IGB/ under the existing long-term contract with Azerbaijan. These volumes cover around 27% of the country's consumption and are key to achieving favourable blue fuel prices," the regulator explained.

After organising tenders, Bulgargaz has also signed two LNG supply contracts with natural gas traders in the region.

The secured quantities of natural gas cover the public supplier's commitments to the final suppliers and heating companies, as well as the quantities under the bilateral contracts with industrial customers and under the Natural Gas Release Programme.