Bulgaria’s natural gas prices are set to decrease in September, marking a 2.5% reduction compared to the previous month. The Energy and Water Regulatory Commission (EWRC) has approved the new rate, which will impact end suppliers, heat energy producers, and distributors.
Key Takeaways
- The price for natural gas in Bulgaria will be 60.52 leva per megawatt hour (MWh) for September.
- This represents a 2.5% decrease from August’s price of 62.09 leva/MWh.
- Azerbaijani gas supplies via the IGB interconnector are a significant factor in the lower price.
- Additional liquefied natural gas (LNG) has been secured through an organized auction.
September Gas Price Details
The EWRC has set the September natural gas price at 60.52 leva per megawatt hour (MWh), equivalent to 30.94 euros/MWh. This price excludes additional charges such as access, transmission, excise duty, and VAT. Bulgargaz EAD will supply gas at this regulated rate to end suppliers, as well as licensed producers and distributors of heat energy.
This adjustment reflects a 2.5% decrease from the August price of 62.09 leva/MWh, after the regulator conducted a thorough analysis of data provided by Bulgargaz EAD. The analysis considered both contracted supplies and prevailing market conditions.
Factors Influencing the Price Reduction
A substantial portion of the gas supply for September will be sourced from Azerbaijan, delivered through the Bulgaria-Greece Interconnector (IGB) under a long-term agreement. These Azerbaijani volumes are crucial in meeting domestic demand and have played a key role in achieving the favorable September pricing.
Furthermore, Bulgargaz has secured supplementary liquefied natural gas (LNG) supplies for the month. These were procured through contracts with traders following an organized auction process, which included stipulations for minimum supply prices and proposed payment methodologies.
Components of the Approved Price
The approved gas price incorporates several key elements. These include the cost at the entry point of the transmission networks, a component for public supply activity as defined by Article 17, paragraph 7 of the National Gas Supply and Distribution Act, and compensation for storage costs. The storage costs, related to maintaining gas reserves at the Chiren facility in line with emergency action plan obligations, are covered under Article 11a, paragraph 2 of the same law.
The gas quantities supplied are intended to fulfill the commitments of the public supplier for September. This includes deliveries to end suppliers, district heating companies, and industrial clients under existing bilateral agreements, ensuring that both household and industrial energy needs are met at the newly regulated rate.
