„Bulgargaz“ will adjust the initially proposed price of natural gas for November, after securing additional quantities from the underground gas storage „Chiren“. This was announced by the company's executive director Georgi Tatarski during an open meeting of the Energy and Water Regulatory Commission.
The initial proposal envisaged that natural gas in November would cost 59.08 euros per megawatt-hour excluding access and transmission prices, excise duty and VAT. Compared to the approved price for October, this meant an increase of 34 percent.
„We looked for reserves so that the increase would not be so serious. We participated in a tender for additional production for the quantities in “Chiren“, the preliminary quantities were increased and we can make a correction to our initial proposal“, Tatarski said.
The new proposal will be submitted by the end of the month
According to the executive director, “Bulgargaz“ will send the adjusted price to KEVR by the end of October. Tatarski said that even after the change, the price will remain about 40 euros per megawatt-hour lower than the quotes on the TTF exchange in the Netherlands.
When the initial application was submitted, TTF natural gas was trading for 81.60 euros per megawatt-hour. At the meeting, the quotes were 20 percent higher, Tatarski pointed out.
KEVR expects a smoother price increase
KEVR Chairman Plamen Mladenovski stated that over 60-70 percent of the price of natural gas is directly related to international markets, especially the Dutch hub TTF. According to him, neither the government nor the regulator can directly change these quotes.
Mladenovski called on “Bulgargaz“ to use all opportunities to limit the growth, since higher prices affect both household consumers and district heating companies.
“We cannot change the international situation and the markets, but let's ensure a smooth change. This is also useful for “Bulgargaz“, as higher prices lead to greater non-payments and liabilities on the part of district heating companies,“ said Plamen Mladenovski.The Chairman of the EWRC scheduled a closed meeting for November 2, at which the final price of natural gas for November will be approved.
Sources: bta.bg, nova.bg