Bulgargaz proposes 45% cheaper natural gas for November, no increase in heating and electricity prices expected

The price of natural gas in Bulgaria may drop by 45% in November, CEO of public supplier Bulgargaz, Denitsa Zlateva, said on October 28 during the open meeting of the energy regulator, where the new price proposal for next month was discussed.

The price proposed to the regulator is 130 BGN per megawatt-hour, compared to 233 BGN in October. The price was achieved thanks to successful tenders for liquefied gas with two suppliers.

"There are two components: the first component is related to the LNG supply tenders held and the good offers received including from the two suppliers, compared to the exchange index the discounts are currently between 38% and 50% of the respective index, Denitsa Zlateva said.

The reasons for the significant decrease in the price are the reduced prices on international exchanges, as well as the launch of the interconnector with Greece, through which Bulgaria receives the full contracted quantities of Azeri gas.

Because of the gas price decrease, the Energy and Water Regulatory Commission will not raise the price of heating on January 1, Ivan Ivanov said. He predicted that no increase in electricity prices is expected. By November 1, the gas storage faculity in Chiren is expected to be filled to 90 percent of its volume.

As regards the issue of the households going to the liberalised electricity market, included in the requirements for the payments under the Recovery Plan, Ivanov said that Bulgaria had not made such a commitment to the EC. The deadlines approved by Brussels stipulate that households should leave the regulated market by the end of December 31, 2025. Before that date and in view of the international situation, purchase of electricity by household consumers from the free market is not appropriate and the EWRC will defend this position, Ivanov added.

In addition to retaining liquefied gas slots at Greece's Revitusa terminal, Bulgargaz is bidding for terminals in Italy and Turkey to secure supplies for 2023, Denitsa Zlateva said.