The price of natural gas for September will be BGN 353.21/MWh without 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. Such a decision was taken by KEVR during the closed meeting of the Commission.
The new price is nearly 19% higher and beats the absolute record from August – nearly BGN 298/MWh. In total, since the beginning of the year, the price jump is 1200%.
KEVR determined the price after an analysis of the data and documents submitted by Bulgargaz on September 1. It was found that the public supplier formed the total forecast 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 secured under a contract for the supply of liquefied natural gas (LNG); Quantities from an “auction type 4” auction on the platform of “Gas Hub Balkan” EAD. The “Bulgargaz” application contains the prices of individual suppliers and the size of their quantities in the total mix.
“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, which were deducted from the total expenses for the price of natural gas for the month of September 2022 “, KEVR states.
“The leading reason for the high price growth for September is the continued increase in international natural gas prices in August as a result of Russia’s military aggression in Ukraine. The greatly reduced or suspended supplies by Gazprom lead to increased uncertainty on the gas market in Europe and forming unrealistically high quotations. An additional negative factor is the increased rate of the US dollar, which is a pricing element. Regardless of the increase, the data show that the established price of natural gas for September is significantly more competitive in compared with the prices on the European gas markets for deliveries in September, which are at levels of 232 EUR/MWh /453 BGN/MWh/”, the regulator added.
According to KEVR, the lower price for Bulgarian consumers is due to the favorable price conditions under the long-term gas supply contract from Azerbaijan. Some of the delivered quantities are at a significantly lower price, as they depend entirely on oil prices for a period of 6 months back. In addition, the price mix of “Bulgargaz” includes supplies of quantities of natural gas from the “auction-type” tenders held by Gas Hub “Balkan”, which are at very competitive prices.
With the launch of the “Bulgaria-Greece” interconnector from October 1 this year. real prerequisites are being created for the formation of a maximum good price for the city of October, Denitsa Zlateva, the executive director of “Bulgargaz” EAD, said during the meeting on August 30.
According to her, our country will now be able to receive the full quantities of gas under the contract with Azerbaijan, which are at an extremely favorable price.
“The prices achieved at the auctions held on the Balkan Gas Hub platform proved that it is possible to secure profitable supplies of natural gas. The Commission fully supports the intention of the public supplier to continue conducting auctions on this platform, as well as to be an active participant at the annual tenders of the Revitusa terminal” emphasized at the meeting the chairman of KEVR Assoc. Ivan Ivanov.
In his words, the quantities from the Balkan Gas Hub auctions, together with those from Azerbaijan and the supplies of liquefied natural gas, can provide favorable prices for Bulgarian consumers and fully cover the country’s needs.