EWRC: The price of gas for April to date would be BGN 128 per MWh, which is an increase of 13.35% compared to March

To date, the price of gas for April, at which Bulgargaz must sell gas, would be in the range of BGN 128 per MWh. This represents an increase of 13.35 compared to the current value of BGN 113.73 per MWh. This was commented by the working group of the Energy and Water Regulatory Commission (EWRC) during the open meeting to discuss the current price application of the gas company.

We remind you that the price application for the price of gas for April was submitted to the EWRC on March 11 and targeted a jump of nearly 58% or a price of BGN 179.36 per MWh.

"Indeed, the application, which was submitted on March 11, reflected the data as of March 10, when the price was very high. Meanwhile, there was a movement of the price in the direction of its reduction. To date, this reduction would affect the price. So our calculations show that it would be around BGN 128 per MWh. This price is not final. It will be calculated after receiving the final data (from Bulgargaz) as of March 31. In percentage terms, this means an increase of 13.35% compared to the current price, "said the working group in response to a question from EWRC Chairman Stanislav Todorov.

Work will also be done on changing the Ordinance on the formation of the gas price so as to reduce the forecast period, it became clear from Todorov's words.

"The current way of setting an estimated price 20 days before the moment is clearly not working," he said, referring to the need for judgment by business and society.

"I propose to change the Ordinance on the formation of the price of gas so that this process is as close as possible to the moment when this price will be fixed.

The current period of 20 days, in my opinion, is not adequate and only creates unnecessary tension in society and industrial consumers. Let us work together with the applicant to bring the price statement as close as possible to the date of entry into force of this price statement. 20 days is too long, given the dynamics of the market, "he said.

According to the EWRC chairman, the deadline for announcing an estimated price by Bulgargaz should be 10 days or one week.

During the meeting, Bulgargaz stated that they had no remarks on the report of the working group regarding the application submitted since the beginning of March this year.

EWRC will issue a final decision on the price of gas after a closed meeting, which will be held on April 1, 2022.

The regulator is expected to discuss in May the prices of heat energy (heating) as the decision for a possible increase will be official and there will be no need for district heating companies to submit applications.

The discussion of the price levels regarding the water supply and sewerage services will be the subject of work of the EWRC in a later period.