EWRC approved 8% increase in natural gas price in Bulgaria for November

The Energy and Water Regulatory Commission (EWRC) approved the natural gas price for November at 68.69 BGN/MWh, excluding access, transmission, excise and VAT. This is nearly 8% higher than the October price, the utilities regulator said.

At this price, public supplier Bulgargaz will sell natural gas to final suppliers and to persons who have been issued a licence for the production and transmission of heat.

The price mix includes the entire contracted quantity of Azeri natural gas supplied via the Bulgaria-Greece Interconnector (IGB), according to the long-term contract with Azerbaijan. These volumes cover 47.92% of November consumption and are important for achieving a favourable price for the blue fuel. "Bulgargaz” has concluded one LNG supply contract with a trader, following an organised tender with minimum delivery price requirements and a proposed payment method. The price mix for the month also includes quantities from the Chiren storage facility.

EWRC notes that the price of natural gas remains nearly BGN 10/MWh lower than prices on international gas markets, thus maintaining competitiveness for Bulgarian consumers.

Compared to the current TTF index, which due to the crisis in the Middle East increased by 11% and reached nearly 42 euro/MWh, the price of Bulgargaz is almost 10 BGN lower. Increasingly important are the price-advantaged supplies under the long-term contract with Azerbaijan, which to some extent suppress further price increases caused by higher volumes requested by end customers under signed contracts, EWRC said. Increased consumption due to heating needs during the cold months reduced the relative share of Azeri gas in the total mix for November and was a factor in the price increase compared to October.