The ten-year network development plan of "Bulgartransgaz" for the period 2023-2032 will be subject to public discussion in EWRC

The Energy and Water Regulatory Commission (EWRC) will hold a public discussion with current or future network users of the Ten-Year Network Development Plan of Bulgartransgaz. The document was published by the gas transmission operator in April for public consultation and presents the activities planned for implementation in the next 10 years to guarantee the security of gas supplies. Also, the readiness of the gas transmission network for future demand and supply levels, investments and commitments. Hydrogen-oriented projects of Bulgartransgaz are included, given Europe's policy in this direction.

Among its goals, the transmission operator states also providing access to natural gas to new municipalities and new end users, which will contribute to improving the ecology, quality of life, energy efficiency and the realization of savings from cheaper fuel through the expansion of existing gas transmission networks to new regions of the country and construction of new gas measuring and gas regulating stations, providing the possibility of joining the gas transmission networks of new end users or gas distribution networks.

A detailed schedule of the projects for the development of the natural gas transmission and storage infrastructure in the period 2023-2025, for which an investment decision has been made, and the planned investments, respectively, is presented.

The report of the working group to the EWRC presents an analysis of the activity of Bulgartransgaz for the past year 2022. It also specifies the reasons for the non-implementation of part of the investment program - mainly due to COVID-19 and, in particular, disruption of the supply chain.

"Bulgartransgaz" EAD also states that during the reporting year there are several main factors that have an impact on the implementation of the investment program, the time impact of which cannot be predicted when drawing up the Plan, the main of which are: the duration of the activities for starting public procurement and the conclusion of a contract are mainly conditioned by the application of the provisions of the Law on Public Procurement, the company's statutes and the internal rules for awarding public procurement; filing appeals against decisions to appoint a public procurement contractor, which, although according to the decisions of the Commission for the Protection of Competition and the Supreme Administrative Court, are unfounded, they reflect on the planned period for the implementation of the objects and, respectively, the utilization of funds for their realization, and so also engage the company's expert staff; lengthy procedures and non-compliance with the legal deadlines by the control bodies and interested persons and instances in the coordination of developed detailed development plans, investment projects, conducting procedures under the Environmental Protection Act and the Biological Diversity Act and obtaining the relevant permit documents for the implementation of design and construction. The projects planned for implementation in 2022, for which there are unutilized investments, are mainly of a transitional nature and their implementation, respectively, the investments for them will be carried out in 2023 or in the following years", the EWRC experts point out. Accordingly, the company has also submitted the additional information requested by the regulator for certain objects.

In the part analyzing the dynamics of the revenue structure, it is specified that they are from the license activities "transmission of natural gas" along the gas transmission networks to the country, to the borders of neighboring countries, "natural gas storage", as well as from the balancing activity. "The total amount of realized revenues from the company for 2022 amounts to BGN 1,196,122 thousand, with an increase compared to 2021 of 93.42% or BGN 577,712 thousand. The total revenue structure includes net revenues from sales and financial income," the working group states.

"Net revenues from sales marked a growth of 92.82% or more with BGN 540,776 thousand compared to 2021. In the structure of net revenues from sales, with the largest relative share of 53.42% in 2022, the revenues from transmission of natural gas to the borders of neighboring countries, amounting to BGN 600,140 thousand, and the increase in these revenues is 73.68% compared to 2021. Revenues from the transmission of natural gas to exit points on the territory of the country in 2022. are BGN 104,499 thousand, which is 9.3% of net sales revenue and decreases by 8.16% compared to 2021, due to lower quantities carried. The relative share of revenues from natural gas storage in 2022 is 2.07% of net revenues from sales, and these revenues amount to BGN 23,290 thousand, or an increase of 60.40% compared to those reported in 2021. The other revenues from the activity, with a relative share of 20.45% of the net sales revenues, amount to BGN 229,751 thousand, or BGN 184,826 thousand more than realized in 2021. The increase is mainly due to the reported revenues from non-monetary compensation in the form of free gas, which is mainly used to fuel the compressor stations along the gas pipeline system for transmission to the borders with neighboring countries and does not bring real income to the company. Financial revenues for 2022 are BGN 72,746 thousand and increase by BGN 36,936 thousand or 103.14% compared to those reported in 2021. The increase is due to higher revenues from exchange rate changes in 2022 ., as well as from interest income," the task force wrote.

The document also contains an analysis of the dynamics of the cost structure. From the performed analysis of the revenues and expenses, it is clear that the revenues from the licensing activities cover the expenses incurred by Bulgartransgaz EAD", state the experts from EWRC, who accordingly save the so-called "commercially sensitive information" The task force report effectively provides a detailed and clear picture of the gas transmission operator's ambitions over the next ten years.