Bulgaria's energy watchdog: Price of natural gas rises by 60%

Bulgaria’s Energy and Water Regulatory Commission (EWRC) on August 12, approved the natural gas price for August, effective as of 1 August 2022, at BGN 297.89/MWh (approx. EUR 152/MWh), excluding access, transmission, excise and VAT charges.

At this price, Bulgargaz will sell natural gas to final suppliers of natural gas and to entities who have been granted a licence for production and transmission of heat.

The energy regulator assures that the necessary quantities of natural gas for August have been secured by Bulgargaz and with a contract signed for LNG supply.

The main reason for the high price increase for August is the increased price of natural gas as a result of Russia's aggression in Ukraine. In the context of severely reduced or suspended natural gas supplies from Russia and increasing uncertainty, many countries on the continent are also entering into short-term contracts. These factors are leading to an imbalance in the gas market and to higher quotations on international indices, EWRC said.

They underline that despite the increase, the data show that the price of natural gas in Bulgaria remains lower than the prices on European gas exchanges - on the largest gas hub TTF, there was a new surge, reaching 212 euro/MWh. The main reason for the lower price in Bulgaria is the favourable price terms of the contract for gas supply from Azerbaijan. Some of the volumes supplied are at a significantly lower price and are not linked to prices on international exchanges, but to oil prices 6 months back.

The energy regulator confirms the opinion already expressed that it is of the utmost importance for Bulgaria’s public supplier “Bulgargaz” to make every effort in the coming months to ensure security of supply and price stability for Bulgarian household and business consumers.