Will there be a new increase in the price of natural gas by 14%?

A new increase in the price of natural gas by 14% was discussed today, December 29,by the Energy and Water Regulatory Commission (EWRC). With the proposed price rise, the blue fuel will cost 117 BGN per megawatt hour.

The price of gas has jumped by over 100% this year alone and we will obviously welcome the new 2022 year with another increase.

The meeting was held online at the EWRC. The director of Bulgargaz Nikolay Pavlov explained that only last week the blue fuel price hit a historical record on the European markets of 180 euros per megawatt-hour, so it is logical to ask for a further increase from January 1, 2022. He assured that all commitments under the National Emergency Plan have been fulfilled by the company and there are sufficient quantities in the Chiren gas storage facility. Over the past year, Bulgaria has achieved a record of historical gas consumption by businesses.

Employers asked why, given that the price of Russian gas is so high, Bulgaria does not import the 1,000 cubic metres of Azerbaijani gas agreed in 2013, which are cheaper than Russian fuel.

Economic analysts explained that in this situation EWRC has few levers to influence the price of gas. This is not the case with the government, which can financially compensate both industry and consumers for the high gas prices, i.e. not to increase the price of household heating.

"With this mix that we have, obviously there is no better price. The question is why we have this mix, why we do not consume more Azerbaijani gas, but divert it, although there is such a possibility on existing gas pipelines and connections. This is a question that business is asking because it is known that Azerbaijani gas is currently several times better than the one we receive under the long-term contract with Gazprom," said Vassil Velev, chairman of BICA.

A new increase in the price of gas by 14% was discussed today by the Energy and Water Regulatory Commission. With the proposal, the blue fuel will cost 117 leva per megawatt hour.

The price of gas has jumped by over 100% this year alone and we will obviously welcome the new year 2022 with another increase.

The meeting was held in absentia at the EWRC. In an online connection, the director of Bulgargaz Nikolay Pavlov explained that only last week the blue fuel hit a historical record on the European markets of 180 euros per megawatt-hour, so it is logical to ask for an increase from January 1 next year. He assured that all commitments under the National Emergency Plan have been fulfilled by the company and there are sufficient quantities in the Chiren gas storage facility. Over the past year, Bulgaria has achieved a record of historical gas consumption by businesses.

Employers asked why, given that the price of Russian gas is so high, Bulgaria does not import the 1,000 cubic meters of Azerbaijani gas agreed in 2013, which are cheaper than Russian fuel.

Economic analysts explained that in this situation EWRC has few levers to influence the price of gas. This is not the case with the government, which can financially compensate both industry and consumers for the high gas, that is, not to increase the price of household heating.

"With this mix that we have, obviously there is no better price. The question is why we have this mix, why we do not consume more Azerbaijani gas, but divert it, although there is such a possibility on existing gas pipelines and connections. And this This is a question that business is asking because it is known that Azerbaijani gas is currently several times better than the one we receive under the long-term contract with Gazprom, "said Vasil Velev, chairman of BICA.

"Bulgaria earns so much from electricity exports and quota sales that it can compensate the price of gas at least for households and district heating, so as not to increase the price for households. That is, these funds are there. It's just a matter of mechanism to be specified and to be approved by the European Commission," added the economist Georgi Angelov.

Whether the EWRC will respect Bulgargaz's price proposal for a 14% increase in the price of natural gas will become clear in the early afternoon of January 1 at a closed meeting of the regulator.

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