Natural gas price increases by nearly six percent in October

The Energy and Water Regulatory Commission approved the price of natural gas for October at 44.09 euros per megawatt-hour, BGNES reports.

Additional increase rejected

Although the energy regulator did not accept the additional increase requested by “Bulgargaz“ by 0.33 euros, the final value is 5.99 percent higher than in September. At this tariff, the public supplier will sell the blue fuel to end suppliers and district heating companies in the country. The indicated price does not include the costs of access, transmission, excise duty and value added tax.

Warning for the winter period

The Chairman of the Energy Regulator Plamen Mladenovski categorically rejected the possibility of an additional price increase this month.

“The Energy Regulator will not allow an additional increase in the price of natural gas for the month of October, as this is unacceptable“, he said during today's meeting.

Mladenovski warned of unfavorable market trends for the blue fuel during the upcoming winter season. According to him, this requires maximum limitation of growth right now, since gas forms over 70 percent of the final bill for domestic heating and any sharp fluctuation directly affects end consumers.

Components of the price mix

The approved energy mix for October includes the guaranteed quantities under the long-term contract with Azerbaijan, as well as supplies of liquefied natural gas secured through tenders. To meet the needs, a minimum output from the underground gas storage facility “Chiren“ is also provided.

The final amount includes the components for the entry of the gas transmission networks, for the public supply activity, as well as the costs of “Bulgargaz“ for storing reserves in implementation of the emergency action plan.