site.btaEnergy Regulator Sets Natgas Price for August at BGN 297.89/MWh, Up by 60% M/M

The Energy and Water Regulatory Commission (EWRC) approved Friday the price of natural gas for August at BGN 297.89/MWh (exclusive of access, transmission, excise, and VAT charges), or some 60% higher compared to the previous month. Thus, EWCR okays the price requested by public supplier Bulgargaz and 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 Commission said that the natural gas price for August is set after a detailed analysis of the data and documents provided. The price takes into account the quantity contracted with Azerbaijan for the period between July 1 and September 30, 2022. Bulgargaz has also contracted supply of liquefied natural gas and with two natural gas traders in the region based on the 'lowest price' criterion. The secured quantities will cover the commitments of Bulgargaz to final natural-gas suppliers, heating companies, and industrial customers.

The Commission said that the strong increase of the price for August was 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 significant increase, the price of natural gas in Bulgaria is still lower than the prices on European gas exchanges, the EWRC pointed out.

The price enters into effect retroactively as of August 1.