Bulgargaz will ask for a higher gas price from September, compared to the current application for BGN 315.16 per MWh

The price of natural gas approved by the Commission is lower than that proposed by Bulgargaz. The regulator found that the price of natural gas included unlawful expenses that were deducted from the total expenses for the price of natural gas for the month of September 2022, the announcement states.

The reasons for the promotion are also indicated.

The leading reason for the high price growth for September is the continuing increase in international natural gas prices in August as a result of Russia's military aggression in Ukraine. The greatly reduced or suspended deliveries by Gazprom lead to increased uncertainty on the gas market in Europe and the formation of unrealistically high quotations. An additional negative factor is the increased rate of the US dollar, which is a pricing element.

Regardless of the increase, the data show that the established price of natural gas for the month of September is significantly more competitive compared to the prices on the European gas markets for deliveries in September, which are at levels of 232 EUR/MWh /453 BGN/MWh/ considered by the regulator.

The lower price for Bulgarian consumers is due to the favorable price conditions under the long-term gas supply contract from Azerbaijan. Some of the delivered quantities are at a significantly lower price, as they depend entirely on oil prices for a period of 6 months back. In addition, the price mix of "Bulgargaz" includes supplies of quantities of natural gas from the "auction type" tenders held by Gas Hub "Balkan", which are at very competitive prices.

At the open meeting held on August 30, the executive director of Bulgargaz EAD Denitsa Zlateva stated that with the launch of the Bulgaria-Greece interconnector from October 1 this year, real prerequisites are being created for the formation of a maximum good price for the month of October. The reason for this is that our country will now be able to receive the full quantities of gas under the contract with Azerbaijan, which are at an extremely favorable price. The company will participate in the Revitusa terminal slot reservation and regasification auctions in 2023 to ensure future LNG supplies.

"The prices achieved at the auctions held on the platform of the Balkan Gas Hub proved that it is possible to secure profitable supplies of natural gas. The commission fully supports the intention of the public supplier to continue holding auctions on this platform, as well as to be an active participant in the annual auctions of the Revitusa terminal," stressed the chairman of the EWRC Assoc. Ivan Ivanov at the meeting. According to him, the quantities from the Balkan Gas Hub auctions, together with those from Azerbaijan and supplies of liquefied natural gas, can provide favorable prices for Bulgarian consumers and fully cover the country's needs, the regulator recalls.

The decision of EWRC to confirm the price of natural gas for the month of September was published on the website of the regulator.