At a closed session, the Commission for Energy and Water Regulation confirmed the price of the blue fuel for the month of September in the amount of BGN 353.21/MWh, almost as much as the public supplier Bulgargaz requested in its final proposal.
Thus, the price in September will surpass the absolute record of nearly BGN 298 in August.
The price approved by the Commission is 42 cents lower than the price offered today by Bulgargaz of BGN 353.63 per megawatt hour. The regulator has established that the price of natural gas includes unlawful expenses, which were subtracted from the total expenses for the price of natural gas for the month of September 2022, BNR writes.
The leading reason for the high price growth for the month of 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 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.
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Regardless of the increase, the data show that the established price of natural gas for the month of September is significantly more competitive compared to the prices on the European gas markets for deliveries in September, which are at levels of 232 EUR/MWh /453 BGN/MWh/.
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, Bulgargaz’s price mix includes supplies of natural gas quantities from the “auction-type” tenders held at the Balkan gas hub, which are at very competitive prices.