The Bulgarian Energy and Water Regulator approved increased price of natural gas

The Energy and Water Regulatory Commission (EWRC) held a closed meeting, at which it adopted a decision in connection with the application submitted by Bulgargaz EAD for approval of a price for October 2020, at which the public supplier will sell natural gas to final suppliers and individuals, which have been issued a license for production and transmission of heat. The final price decision of the Commission was adopted in accordance with the changed terms of the contract between Bulgargaz EAD and OOO Gazprom Export.

The decision adopted by the Commission takes into account the updated price of natural gas proposed by Bulgargaz EAD on 1.10.2020, which reflects the information received on the market indices of European gas hubs as of 30.09.2020, for the average monthly exchange rate for conversion of the euro into US dollars for September 2020 of the European Central Bank, as well as for the average prices of alternative fuels to natural gas / fuel oil with sulfur content 1% and gas oil with sulfur content 0.1% /, to 30.09.2020.

With the decision of the Commission the approved price of natural gas from October 1, 2020 amounts to BGN 24.72 / MWh (excluding prices for access, transmission, excise and VAT). For the previous September 2020, the approved price of natural gas amounted to BGN 22.46 / MWh, the energy regulator said in a statement.

Despite the increase in the price of natural gas from October 1 compared to September, the price of electricity and heat remain unchanged.

The approved price of natural gas of BGN 24.72 / MWh includes the component price of natural gas at the entrance of the gas transmission networks, the component for the activity “public supply” under Art. 17, para. 7 of the NRCPG and the component for compensation of expenses, covering the expenses of Bulgargaz EAD for storage of quantities in the underground gas storage Chiren in fulfillment of obligations under the Emergency Action Plan.

The EWRC has the authority to approve the price of natural gas upon an application submitted by the public supplier. Based on the provided data and documents to the application and after checking the calculations, the Commission approves the price of natural gas for the month, which is applied from the first day of the month, according to Article 30, paragraph 1, item 7 of the Law on energy. In approving the price of natural gas, the EWRC shall take into account the stated estimated quantities of natural gas imported from the domestic market, the changed terms of the contract between Bulgargaz EAD and OOO Gazprom Export and the BNB average exchange rate of BGN against the foreign currency pays for the imported natural gas. The powers of the EWRC are only to establish whether the application of the public supplier Bulgargaz EAD meets the requirements of Ordinance № 2 for regulation of natural gas prices and the supply contract between the two companies. In determining the expected delivery prices in connection with the formation of the entrance price of gas transmission networks according to Art. 17, para. 3 of the NRCPG report the total amount of natural gas for October 2020 and the relative share of the quantities for public supply of natural gas, the natural gas release program, as well as under the bilateral agreements.

The decision of the EWRC for approval of the price of natural gas from 1.10.2020 is published on the website of the regulator.

The announcement of Bulgargaz also from September 11 is expected that the estimated price of natural gas for November 2020, formed in accordance with Ordinance № 2 of 19.03.2013 on the regulation of natural gas prices, will be 26.25 BGN / MWh (excluding prices for access, transmission, excise and VAT) and reports the impact of the price-forming components as of 09.09.2020.