Natural Gas Prices Surge: Bulgaria Faces a 36% Increase Ahead of Winter

As Bulgaria braces for the onset of the heating season, the cost of natural gas is skyrocketing, with Bulgargaz EAD announcing a substantial 36% price hike. The company's proposed price for November 2023 stands at BGN 82.12/MWh, excluding excise duty and VAT, marking a significant financial burden for consumers.

The surge in natural gas prices is attributed to several key factors. One of the primary drivers behind this price increase is the substantial rise in international natural gas prices on the global exchanges during the month of October. These price hikes on international markets have had a cascading effect, leading to costlier natural gas for Bulgarian consumers.

Furthermore, the imminent arrival of the heating season has compounded the price surge. As the country gears up for increased energy consumption during the winter months, the demand for natural gas has risen significantly. This surge in demand naturally exerts upward pressure on prices.

Bulgargaz emphasized that the public supplier's price for the current month still remains more than 10% lower than the TTF month-ahead pricing index for November. The rise in international prices, driven in part by geopolitical events, has pushed the TTF index to its highest levels since February 2023, ranging from 54-56 EUR/MWh.

The Energy and Water Regulatory Commission is yet to determine the final price of natural gas, and this sharp increase in costs has raised concerns among consumers. In the past month, Bulgargaz had initially proposed a gas price of BGN 67.27/MWh for November. However, a subsequent prediction indicated a more substantial 20% increase in gas prices, far surpassing the initially projected 11%.

As the colder months approach, Bulgaria faces the challenge of managing higher energy costs, calling for efficient and cost-effective energy solutions.

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