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Energy regulator approved new prices of natural gas for Q1 of 2020

energy regulator approved new prices natural gas 2020
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15:12, 20.05.2020
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Bulgaria’s Energy and Water Regulatory Commission (EWRC) held a closed meeting on May 20, at which it adopted decisions in connection with the applications submitted by Bulgargaz EAD for approval of natural gas prices for the periods January 1 - January 31, 2019, February 1 - February 29, 2019. and 1 March - 31 March 2019 under which the public supplier will sell natural gas to end suppliers and to entities which were issued a license for production and transmission of heat.

The approval of natural gas prices for previous periods is a result of the changed terms of the contract between Bulgargaz EAD and Gazprom Export from March 2, 2020 for the supply of natural gas, according to which the public natural gas supplier should reimburse sums under contracts for the supply of natural gas, as of August 5, 2019.

In this regard, according to the adopted amendments to the Energy Act of 24.04.2020, the public gas supplier should reimburse sums under contracts for the supply of natural gas to end suppliers of natural gas and customers connected to the gas transmission network, including entities which have been issued a license for production and transmission of heat.

EWRC approved a price of natural gas for the period January 1 - January 31, 2020 to the size of BGN 37.82 / MWh (excluding prices for access, transmission, excise and VAT). Compared to the price for January 2020, approved by the decision of the regulator from 01.01.2020, the decrease is by BGN 6.22 / MWh or by 14.12%.

The price of natural gas of BGN 37.82 / MWh includes the component price of natural gas at the entrance of the gas transmission networks, the component for the activity “public supply” under Art. 17, para. 7 of the Ordinance on natural gas price regulation (ONGPR) and the component for compensation of expenses, arising from imposed obligations to the society under art. 11a, para. 2 of ONGPR, covering the costs of Bulgargaz EAD for storage of quantities in the underground gas storage Chiren in fulfillment of obligations under the Emergency Action Plan.

The price of natural gas does not include prices for access and transmission through the gas transmission network, determined by the Methodology for determining prices for access and transmission of natural gas through the gas transmission networks, owned by Bulgartransgaz EAD, which customers should pay to end suppliers.

When approving the price of natural gas for the period 1.01 - 31.01.2020, EWRC has taken into account the actual delivered quantities of natural gas during this period, the changed conditions under the contract for supply of natural gas between Bulgargaz EAD and Gazprom Export, according to which the price is formed by a hybrid formula.

The average exchange rate of the Bulgarian National Bank of the BGN to the foreign currency in which the natural gas imported into the country is paid for a period of forty-five days preceding the month of submission of the price approval proposal - 17.10.2019 - 30.11. 2019.

The energy regulator adopted a decision approving a price for the period 1.02.2020 - 29.02.2020, according to which the public supplier sells natural gas to end suppliers and to entities to which a license for production and transmission of heat has been issued.

After reviewing the application of the public supplier and taking into account all pricing factors, the approved price of natural gas for the period amounts to BGN 33.81 / MWh (excluding prices for access, transmission, excise and VAT). Compared to the price for February 2020, approved by the decision of the regulator from 01.01.2020, the decrease is by BGN 10.23 / MWh or by 23.23%.

The Energy and Water Regulatory Commission adopted a third decision approving a price for the period 01.03.2020 - 31.03.2020, at which the public supplier sells natural gas to the end suppliers of natural gas and to entities to which a license has been issued. for production and transmission of heat energy.

After reviewing the application of the public supplier and taking into account all pricing factors, the approved price of natural gas for the period is BGN 30.10 / MWh (excluding prices for access, transmission, excise and VAT). Compared to the price for March 2020, approved by the decision of the regulator from 01.01.2020, the decrease is by BGN 13.94 / MWh or by 31.65%.

The decisions of the EWRC for approval of the price of natural gas for the months of January, February and March 2020 will be published on the website of the regulator.

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