site.btaEnergy Regulator Okays 32% Natgas Price Rise for July

Bulgaria's Energy and Water Regulatory Commission (EWRC) has approved a price of natural gas of BGN 186.17/MWh, effective July 1, 2022, the EWRC said on Tuesday.

The new price is by BGN 0.30 lower than the increase requested by Bulgargaz and by BGN 44.81/MWh (32%) higher than the level in June.

This is the final price at which Bulgargaz will be selling natural gas to final natural-gas suppliers which are licensed to produce and transmit heat.

The price takes into account the entire quantity contracted with Azerbaijan. Bulgargaz has also contracted supply of liquefied natural gas and with natural gas traders in the region so as to make sure that demand for July will be met.

The Commission said that the increase of the price for July was due basically to the natural gas hike as a result of steep demand and decreased supply due to Russia's military aggression in Ukraine. As Russian gas supplies have been dramatically reduced or discontinued and energy deliveries are ever more insecure, a number of countries in Europe, too, are forced to conclude short-term contracts, which pushes international index prices up. Regardless of the increase, the price of natural gas in Bulgaria is still considerably lower than the prices on European gas exchanges, the EWRC pointed out.

The Commission recommends that contracts be concluded in the coming months with at least three alternative suppliers which price the gas by different methods. This will make it possible to achieve the security of supplies and stability of prices for Bulgarian household and business consumers.