The increase in the price of natural gas requested by “Bulgargaz“ by nearly 34% is realistic, and if it is fully reflected in district heating systems, heating may increase in price by about 20%. This was stated by energy expert Martin Vladimirov.
The state gas supplier has submitted an application to the Energy and Water Regulatory Commission for a price of 59.08 euros per megawatt-hour in November. For October, KEVR approved a tariff of 44.09 euros per megawatt-hour. The difference is almost 15 euros, or nearly 34%, as the amounts do not include access and transmission fees, excise duty and VAT.
“Bulgargaz“ justifies the proposal with the costs of providing the necessary quantities of natural gas. The price mix includes supplies under the long-term contract with Azerbaijan, liquefied natural gas and quantities from the underground gas storage facility “Chiren“. The company also points to the movement of prices on European gas markets.
KEVR has not yet made a final decision
The proposal does not mean an automatic price increase of 34% for all consumers. KEVR must make its own calculations and determine the final price of gas for November. The new tariff will apply to customers on the regulated market, including end suppliers and district heating companies.
The impact on heating bills will depend on the pricing model of each district heating company and the regulator's decision on heat energy. According to “24 hours“ The regulation allows for changes in heating prices no more often than once every six months in the event of a significant change in the estimated gas price, defined as a deviation of 15%.
What does this mean for „Sofia District Heating“
For the Sofia District Heating Company, the average estimated gas price for the regulatory period is 37.90 euros per megawatt-hour. This is below the current October price of 44.09 euros, but at the proposed November tariff, the difference from the forecast would be significant.
Therefore, according to Vladimirov, an increase in the gas price by the full declared amount could lead to about 20% more expensive heating. This remains a forecast, not a final decision for household bills.
The Energy Regulatory Commission is yet to consider „Bulgargaz“'s application and determine the final price for November. The regulator will then assess whether there are grounds for changing the prices of heating energy.
Sources: btvnovinite.bg, 24chasa.bg, bnrnews.bg