The Energy and Water Regulatory Commission approved the price of natural gas for June at 35.62 euros/MWh, excluding access, transmission, excise and VAT prices. At this price, “Bulgargaz“ EAD will sell natural gas to end suppliers and to persons who have been issued a license for the production and transmission of heat energy.
According to KEVR, the approved price is very advantageous for Bulgarian household and business consumers, as it is over 10 euros/MWh or about 25% lower than the current levels on the European gas exchanges. This favorable trend continues for the third month. The report shows that compared to international quotes, the approved regulated price for April is about 20 euros/MWh lower. In May, the trend continues and the price for the domestic market is over 10 euros/MWh more favorable compared to international quotes.
The price mix for June includes the entire agreed quantity of Azerbaijani natural gas supplied via the interconnector “Bulgaria - Greece“ (IGB), according to the long-term contract with Azerbaijan. “Bulgargaz“ also provided liquefied natural gas (LNG) under contracts concluded with traders, after an organized auction.
Analyses show that the quantities supplied from Azerbaijan play a key role in forming favorable prices for the domestic market and until June, the Bulgarian consumer is protected from the sharp increase in prices on the European gas markets. In July this year However, the price under the long-term contract with Azerbaijan for the supply of natural gas is yet to be updated. The increased international oil prices over the past three months will be taken into account, as a result of geopolitical risks for supplies along key routes. Additional factors for the price increase in gas are the growing demand for filling gas storage facilities, as well as competition between the European and Asian markets for LNG supplies.
The approved price of natural gas includes: the component of the price of natural gas at the entrance to the gas transmission networks, the component for the activity of “public supply“ under Art. 17, para. 7 of the NRCPG and the component for compensation of costs under Art. 11a, para. 2 of the NRCPG, covering the costs of "Bulgargaz" EAD for storing quantities in the gas storage facility in “Chiren“, in fulfillment of obligations under the Emergency Action Plan.