Changes in distribution and supply prices for Overgas Networks customers from January 1, presented by the company

New distribution and supply prices for Overgas Networks customers come into effect from January 1, 2025. After five years of "frozen prices", the gas distribution company submitted an application to the Energy and Water Regulatory Commission (EWRC) to change the two components, which are only part of the final bill of gasified consumers*. During the past regulatory period 2020-2024. Overgas Networks operates at constant, fixed prices, regardless of the force majeure circumstances after the war in Ukraine and the drastic changes that have occurred in the gas markets globally and in Europe.

At its meeting, the EWRC approved a distribution price for household subscribers of 36.60 leva/MWh, and the supply price will be 5.88 leva/MWh. The increase in the final price in the bills of the company's household customers is 12%, and for business users it is 10%, compared to the price of natural gas for December 2024.

Overgas Networks has not updated its prices for 5 years, despite the annually increasing inflation in the country, which for the last 3 years alone has been slightly over 30%. Despite the new prices, natural gas continues to be a much more profitable alternative for heating compared to electricity, which is about to be increased again. For the period 2020-2024 The price of electricity for household consumers has been changed 5 times in the direction of increase. The absolute increase is 38.40 leva/MWh or 20%, with the price reaching 233 leva/MWh. For comparison - 16 stotinki per kilowatt-hour will cost heating with gas, and 23 stotinki per kilowatt-hour with electricity or 7 stotinki more than the blue fuel.

The new prices will allow the company to provide its services to over 90,000 household and 3,600 business consumers, to maintain its own gas distribution network of over 2,500 kilometers throughout the country, to cover the costs of transporting natural gas along the built network, to ensure the management of operating and emergency modes, the provision of smart flow meters for household consumers, as well as all other activities necessary to carry out the company's main mission - to provide access to an ecological energy alternative for its customers.

* The final price of natural gas is the sum of four components:

- Price for natural gas supply – the price at which the supplier Bulgargaz sells natural gas to gas distribution companies, i.e. the price of gas as a resource;

- Price for access and transmission of natural gas – covers the costs of transporting natural gas through the transmission network of Bulgartransgaz;

- Price for natural gas distribution – covers the costs of transporting natural gas through the gas distribution network built by the licensed company in the respective region or city. The costs of this activity also include the accounting of natural gas;

- Price for natural gas supply – covers the costs of the licensed company for collecting and invoicing natural gas.