Energy Regulator Approves Natural Gas Price Reduction of Over 34% for August, September 2019

The Energy and Water Regulatory Commission (EWRC) announced here on Monday that it has confirmed changes in the price of natural gas for the months of August and September 2019. The natural gas price for the period of August 5 - 31 is 34.79 per cent lower compared to the previous price set by the regulator for that period, while for the month of September the reduction is 34.32 per cent.

EWRC held a meeting behind closed doors on May 8, during which it adopted decisions in connection to Bulgargaz's submitted requests to confirm the prices for the two periods, at which the company can sell natural gas to end suppliers and customers connected to the gas transmission network.

The goal was to calculate the sums which Bulgargaz, being the public supplier, and the end suppliers have to reimburse to their clients, after it signed in March 2020 an annex to its agreement with Gazprom reducing the price of natural gas by over 40 per cent as of August 5, 2019.

Reimbursements will be made to end suppliers and clients, who are connected to the gas transmission network, including persons who have been issued licensure for the production and transmission of heat energy.

The confirmed price by EWRC is 29.28 lv/MWh (excluding access and transmission costs, excise duty and VAT) for the period August 5 - 31, 2019. This is 15.62 lv/MWh, or 34.79 per cent, less than the previous price confirmed by the regulator on June 28, 2019. The price for September is now set at 29.49 leva/MWh (excluding access and transmission costs, excise duty and VAT), which is 15.41 leva/MWh, or 34.32 per cent, less compared to the previous price.

These prices do not include costs for accessing the natural gas transmission network and for transmission.

This week, the regulator will hold meetings behind closed doors to decide on the price of gas for October, November and December of last year.

EWRC is conducting an analysis on the impact of the natural gas price changes during the period between Ausgust 2019 and March 2020 on the prices of heating and electricity produced by TPPs with high efficiency cogeneration, and will make a separate decision on those prices. LN/MY

Source: BTA