Nikolay Pavlov promised: Bulgargaz will continue the trend for lower gas prices in April

Bulgargaz will continue the trend of lower gas prices in April. This was commented during the open discussion in the EWRC on the price of natural gas in April by the executive director of the gas company Nikolay Pavlov.

Bulgargaz's offer is for the price of gas in April 2021 in the amount of BGN 32.32 per MWh. It should be noted that the price offered by the public supplier for April is lower than the forecast value of BGN 33.41 per MWh announced in early February. The report of the working group was published earlier on the page of the energy regulator.

The Executive Director of Bulgargaz pointed out that in the report of the EWRC working group it confirmed the correctness of the gas company in terms of setting the price of blue fuel.

"It is obvious that the price has been slightly adjusted in the direction of a decrease in the amount of excess revenue for 2020. The gas price proposed by Bulgargaz for approval by the EWRC for April 2021 reflects the dynamics of the quotations of the oil products, as well as the prices on the European gas markets.

It should be noted that the prices of alternative fuels fuel oil and gas oil, which form the petroleum component of the pricing formulas, increased significantly - by approximately 28% in the second quarter of 2021 compared to those applied in the first quarter.

It should also be emphasized that during the winter season, when the consumption in the country is many times higher than during the summer season, Bulgargaz managed to offer the Bulgarian consumer of natural gas, including the Bulgarian industry, prices that are significantly higher. -lower than those on European gas markets, including those in the region.

I want to emphasize that this became possible thanks to the price mix of Bulgargaz, formed by all sources of supply. This price advantage for the Bulgarian consumer, calculated through the delivered quantities, is approximately BGN 95 million, which is a direct support for the Bulgarian consumer, including the Bulgarian industry.

In conclusion, I would say that the tendency of Bulgargaz to offer a natural price lower than in the European gas markets and in the region will continue in April 2021.

The Chairperson of the EWRC Working Group Agapina Ivanov pointed out that the EWRC expects the final proposal of Bulgargaz on April 1, when the final price for April this year will be considered and approved at a closed meeting. It will also take into account the changes in the prices of blue fuel for the last ten days of March.

At the same time, we must recall that the price approved by the regulator for March this year was BGN 28.64 per MWh without prices for access, transmission, excise and VAT). The new proposed price of gas in April 2021 in the amount of BGN 32.32 per MWh represents an increase of nearly 13 percent. This is also the highest increase in the price of gas so far.

The forecast price of Bulgargaz for May (announced at the beginning of this month) is BGN 34.44 per MWh (excluding prices for access, transmission, excise and VAT) and also envisages a jump.

From this decision of the EWRC will actually depend on what adjustments in the prices of heating and electricity will occur in the next regulatory period for the prices of electricity and heating.

TTF's April futures are currently priced at 18.49 euros per MWh.

The level of filling of European underground gas storage facilities has decreased to 29.99% or 333.9940 TWh. The underground gas storage in Chiren is filled to 21.46% or 1.3455 TWh.