Gas supply companies and associations in a position with EWRC request Rules for the supply of natural gas from Bulgargaz

Leading energy companies and branch associations from the natural gas sector have sent an official letter to the Commission for Energy and Water Regulation, in which they insist on the urgent adoption of Rules for the supply of natural gas by the public supplier. The existence of this normative act is in accordance with Art. 21, para. 1, item 10 of the Law on Energy and aims to guarantee transparency and efficiency in the process of supplying natural gas to a regulated market, reported the Bulgarian Natural Gas Association.

Despite the clearly established legal requirements, the energy regulator for unclear reasons has been delaying this process for years. In their letter, the organizations emphasize that the non-acceptance of the Rules for the supply of natural gas by the public supplier creates uncertainty in the market and may lead to difficulties for users of natural gas at regulated prices - over 150,000 Bulgarian households.

In practice, the inaction of the regulator enables Bulgargaz EAD, in its capacity as an energy company with a dominant position on the natural gas supply market, to continue its long-standing practice of uncontrolled, annual and unilateral changes to the terms of its contracts with the final suppliers, without the participation of the legally defined regulator of these services of public interest, indicated by the associations. Just one of the eloquent examples of the result of this regulatory oversight is that, as of the date of signing this letter, there is not a single signed and active contract for the public supply of natural gas on the territory of Bulgaria, the position also claims.

According to the Energy Law, the Natural Gas Supply Rules are mandatory and are an important tool for regulating the relations between final suppliers and the public supplier to protect the interests of consumers. In the submitted position, the energy companies emphasize the need for clearly defined conditions and mechanisms to ensure equality and fair access to natural gas. They also remind about the many conversations held and commitments undertaken by EWRC, which have so far remained without any result.

With their letter to the regulator, the companies insist on urgent actions to ensure better predictability and stability in the sector, setting a two-week deadline for the energy regulator to start a procedure for adopting the long-delayed regulatory act. Among the signatories of the position are "Bulgarian Natural Gas Association", "Bulgarian Gas Association" and the final suppliers of natural gas at regulated prices on the territory of Bulgaria - "Citigas Bulgaria" EAD, "Sevlievo Gas-2000" AD, "Gazinengineering" OOD, " Aresgaz AD, Balkangaz-2000 AD, Komekes AD, Kostinbrodgaz OOD, Pravetsgaz-1 AD, Overgaz Networks AD.

According to the data of the gas associations, there are currently close to 150,000 Bulgarian households who are users of the regulated natural gas market, and a number of gaps in the regulatory framework, such as the lack of rules for public supply approved by the energy regulator, prevent the wider use of natural gas.

According to them, the share of natural gas covers about 4% of the energy needs of households in Bulgaria, while in the European Union this share is about 30%. The lack of sustainable policies to promote gasification lead to higher heating costs for Bulgarian households, as natural gas heating continues to be among the cheapest energy alternatives.

The supply of natural gas by the public supplier is a service of public interest and as such is subject to regulation by EWRC. A license to carry out the activity of a public natural gas supplier in Bulgaria is held by only one company - the state company "Bulgargaz" EAD.