EWRC has approved a further 5% increase in natural gas prices for Bulgaria

The Energy and Water Regulatory Commission approved yet another increase in the price of natural gas supplied by Bulgargaz. At Thursday’s meeting, the regulator approved a price of 35.98 euros/MWh, excluding access, transmission, excise, and VAT fees for May, representing an increase of about 5% compared to the previous month.

We recall that in April as well, the energy regulator approved a 5% price increase for the raw material sold by the public supplier to end-users and to entities licensed to produce and transmit thermal energy.

The Energy and Water Regulatory Commission (EWRC) emphasizes that the price of natural gas in Bulgaria remains among the lowest in Europe. According to the regulator, it is about 10 euros/MWh lower compared to the European TTF gas exchange, where May indices are at levels around 46.30 – 46.85 euros per megawatt-hour.

The main factors influencing gas price levels in the coming months are geopolitical risks to supplies along key routes, the filling of storage facilities, and competition for LNG between European and Asian markets, the regulator notes.

However, it emphasizes that thanks to supplies under the long-term contract with Azerbaijan, domestic consumption will be almost entirely covered during the summer months. These volumes play a key role in ensuring favorable prices for the domestic market, and until June of this year, Bulgarian consumers will not feel the sharp price increase that is currently affecting European markets.

However, in July, the price under the contract with Azerbaijan for natural gas supply is set to be updated, taking into account the increased international oil prices, according to the Energy and Water Regulatory Commission (EWRC).

The price mix for May includes the entire contracted volume of Azerbaijani natural gas delivered via the “Bulgaria – Greece” (IGB) interconnector. Bulgargaz has secured liquefied natural gas (LNG) under contracts with traders, following an organized tender with requirements for a minimum delivery price and a proposed payment method. The price mix also includes a quantity from production at the Chiren gas storage facility.

Translated with DeepL.