The price of natural gas for November could have increased by 39.37%, but ultimately the rise was limited to 32.52%. This was explained by Tasko Ermenkov, a member of the Energy and Water Regulatory Commission, who denied that political pressure had been exerted in determining the price.
The EWRC approved a price of €58.43 per MWh, excluding access and transmission fees, excise duty and VAT. In October, the price was €44.09 per MWh. Bulgargaz’s initial proposal was €59.08 per MWh, or an increase of nearly 34%.
Changed supply mix
According to Ermenkov, the initial expectation had been for the increase to remain below 30%, but the sharp rise in the European TTF gas index changed the calculations. Following pressure from the regulator, Bulgargaz changed the ratio between the various supply sources.
The supply mix includes additional quantities from the Chiren gas storage facility, the full monthly quantities under the long-term contract with Azerbaijan, as well as liquefied natural gas under contracts with traders concluded following an organised tender. The EWRC said that without the use of additional gas from Chiren, the increase would have reached 39.37%.
“I am completely convinced that we achieved the maximum that could be achieved amid this price escalation of TTF,” Ermenkov said.
Claims of political interference rejected
The regulator’s representative rejected claims that the contract with the Turkish company BOTAŞ was the reason for the price increase. According to him, under the current conditions, gas transmission through Turkey is currently cheaper than transmission through Greece.
Ermenkov also denied that the EWRC’s decision had been influenced by the date of the presidential election. He stressed that the commission operates according to legally defined formulas, not a political timetable.
According to him, the international situation continues to have a strong impact on gas markets, and another price increase cannot be ruled out. “If things continue this way, this price will surely continue to rise,” he warned.
The EWRC says it will continue to use its statutory powers to limit sharp changes in the price of natural gas.
Sources: novini.bg