Shock price increase: "Bulgargaz" proposes that the price of gas for August will be BGN 286.84 per MWh, which is an increase of 54%

"Bulgargaz" proposes that the gas price from August be BGN 286.84 per MWh (without access, transmission, excise and VAT). The increase in price compared to the price confirmed in July by 54.07%. This is clear from the application submitted by the gas company to the Commission for Energy and Water Regulation (EWRC). The price increase is the highest ever requested by the gas company.

For comparison, the price approved by EWRC for the month of July was BGN 186.17 per MWh, and then gas became more expensive by 31.7% compared to the month of June (BGN 141.36 per MWh). The forecast of "Bulgargaz" in June was that the blue fuel in August will cost BGN 149.39 per MWh.

The proposal for the August prices of "Bulgargaz" comes with a delay of at least 17 days, and although it will not be approved by EWRC until the decision of the Constitutional Court is implemented, it is at least a reference point for business.

However, at this price offered by the gas company, it is not clear how the business will fare given the limited options of consumers. Moreover, the price is so high that district heating companies will be unable to purchase gas, given the price levels established by the regulator earlier this year.

In its request for the August gas price, "Bulgargaz" is based on the factors forming the prices for August this year, among them the prices of alternative fuels, the average exchange rate reference of the leva to the US dollar, the price of Azeri gas, etc. Among the documents attached to the request are the offers for the supply of an entry point for Greece, as well as those for the supply of LNG.