Bulgarian Regulator Adopted Increase of Gas Price Backdating it April 1st

The Energy and Water Regulatory Commission (EWRC) decided to increase the price of natural gas backdating it from April 1.

New price will be to 33.19 BGN per megawatt-hour (excluding excise, VAT, storage and transmission fees), which means that the price is increased by almost 16 percent.

On March 1, EWRC approved a price of BGN 28.64 per megawatt-hour for natural gas, which Bulgargas sells to its customers.

The regulator's decision was delayed due to an inspection by the Ministry of Energy at Bulgargas. The reason was indirectly the EWRC.

In March, the state gas company demanded a gas price of BGN 32.32 per megawatt-hour, an increase of 12.85%, from April 1.

 However, the EWRC estimated that there were excess revenues and the increase could be mitigated down to 12% or BGN 32.09.

Natural gas is becoming more expensive due to the situation on the oil markets and the price of derivatives, which are substitutes for gas (fuel oil and gas oil), as well as due to the rise in price of natural gas on European stock exchanges, the EWRC said in its decision.

The decision is also made on the basis of the terms of Bulgargas's contracts with Gazprom Export, as well as the import of gas from Azerbaijan.

 Despite the sharp rise, the prices of heating and hot water, as well as electricity produced in a combined way, will not increase, the EWRC said.

Bulgargas expects that the price of natural gas will continue to rise in the coming months. This is confirmed by analyzes of the International Energy Agency (IEA), which show an increase in demand for raw materials in Europe, including Russian pipe gas.