Energy and Water Regulatory Commission approved the natural gas price for August

The Energy and Water Regulatory Commission approved the natural gas price for August at BGN 59.67/MWh, excluding access, transmission, excise and VAT. At this price, public supplier Bulgargaz EAD will sell natural gas to the final suppliers and to persons who have been issued a license for production and transmission of heat.

The approved price of natural gas includes the component of the price of natural gas at the input of the gas transmission networks, the component for the activity "public supply" under Art. 17, para. 7 of the NSRF and the cost compensation component under Article 11a(2) of the Ordinance on natural gas price regulation (ONGPR), covering the costs of Bulgargas EAD for storing volumes in the gas storage facility in Chiren, in fulfilment of obligations under the Contingency Plan.

The Commission approved the price following an analysis of the actual data submitted today by Bulgargas EAD, which form the natural gas price for August. They take into account quotations on international gas markets and the exchange rate up to and including 31 July this year.

The regulator found that the total estimated quantity for the domestic market was provided by two different supply sources. The price mix for August includes the entire contracted quantity of Azeri natural gas supplied via the Bulgaria-Greece interconnector /IGB/, according to the existing long-term contract with Azerbaijan. These volumes cover 74.66% of consumption for the month and are key to achieving favourable blue fuel prices.

"Bulgargaz has concluded one LNG supply contract for August with a trader from the region, following a tender procedure, with minimum delivery price requirements and a proposed payment method.

The quantities secured cover the public supplier's commitments for August - to final suppliers and district heating companies, as well as the quantities under bilateral contracts with industrial customers.

The confirmed price of 59.67 BGN/MWh is 1.4% lower than the price of natural gas in July, which was 60.58 BGN/MWh. At the open meeting, the Chairman of the EWRC Assoc. Prof. Ivan Ivanov commented that the initial estimates foresaw a 3% increase, but after the decline in prices on the Dutch exchange started in the past three weeks, this trend has changed in a favourable direction.