Bulgaria’s Energy and Water Regulatory Commission (EWRC) approved a 4.5% increase in the price of natural gas for August, setting the rate at 39.43 euros per megawatt-hour, excluding access, transmission, excise and VAT costs.
The new price will apply to sales by Bulgargaz to end suppliers and to companies licensed for the production and transmission of heat energy.
Bulgargaz requested the increase due to the use of a new supply source. Despite the higher price, the regulator said the approved rate remains competitive for Bulgarian households and businesses.
"Regardless of the 4.5% increase, the approved price remains competitive for Bulgarian household and business consumers. It is over 30% lower than the quotes on European gas exchanges and will not significantly affect consumers under conditions of reduced summer consumption by district heating plants," EWRC Chairman Plamen Mladenovski said.
At the open meeting held on Thursday, June 30, Bulgargaz adjusted its initial price offer upwards due to the need to include quantities under the expensive contract with the Turkish company Botas in the mix. This is necessary due to Azerbaijan's inability to deliver the entire agreed quantity under the long-term contract, as well as due to the low injected quantities in the Chiren storage facility. It was assessed that in the summer it is advisable to inject, rather than draw from it.
