The Commission for Energy and Water Regulation (KEVR) approved the price of natural gas for the month of September in the amount of BGN 353.21/MWh, excluding access, transmission, excise and VAT prices. At this price, “Bulgargaz” will sell natural gas to the end suppliers of natural gas and to persons who have been issued a license for the production and transmission of thermal energy.
Earlier, “Bulgargaz” demanded that the price of blue fuel increase by BGN 353.63/MWh. The price adjustment is minimal.
The Commission determined the price after an analysis of the data and documents submitted by Bulgargaz on September 1, 2022. It was found that the public supplier formed the total estimated quantity for the domestic market from three sources: The quantity of gas under the Fourth Agreement to the contract for the supply of natural gas by a company from Azerbaijan for the period from July 1, 2022 to September 30, 2022; Quantities of natural gas provided under a contract for the supply of liquefied natural gas /LNG/; Quantities from an “auction type” auction on the platform of “Gas Hub Balkan” EAD.
Bulgargaz’s application contains the prices of individual suppliers and the size of their quantities in the total mix. The secured quantities of natural gas cover the commitments of the public supplier to final suppliers and heating companies, as well as the quantities under the bilateral contracts with industrial customers, the obligations under the Release Program and the Injection Plan at the Chiren Gas Plant.
The price of natural gas approved by the Commission is lower than that proposed by Bulgargaz. The regulator found that the price of natural gas included unlawful expenses that were deducted from the total expenses for the price of natural gas for the month of September 2022.
The leading reason for the high price growth in September is the continued increase in international prices in August
natural gas as a result of Russia’s military aggression in Ukraine. The greatly reduced or suspended deliveries by Gazprom lead to increased uncertainty on the gas market in Europe and the formation of unrealistically high quotations. An additional negative factor is the increased rate of the US dollar, which is a pricing element, KEVR explains.