Bulgaria's November Gas Prices Rise by 8%

Bulgaria’s Energy and Water Regulatory Commission (EWRC) has set the November price of natural gas at 68.69 leva per megawatt-hour, excluding access, transmission, excise, and VAT fees. This price reflects an almost 8% increase over the October rate, according to the regulator’s report.

The price mix includes the entirety of the contracted Azeri natural gas, supplied through the "Bulgaria-Greece" interconnector as per a long-term agreement with Azerbaijan. This Azeri gas covers 47.92% of Bulgaria’s monthly demand and plays a critical role in keeping natural gas prices favorable. Bulgargaz, the state-owned gas supplier, will sell natural gas at this rate to both final suppliers and licensed entities for heat production and transmission.

Alongside Azeri gas, the November price mix incorporates liquefied natural gas (LNG) supplies from a separate agreement with a trader. This contract, secured through an organized auction, includes stipulations for minimum delivery prices and a specific payment method. Quantities from the Chiren gas storage facility are also factored into this month’s price.

Despite the increase, the EWRC emphasizes that the price remains nearly 10 leva lower than prevailing rates on international gas markets, thus retaining some cost advantage for Bulgarian consumers. Notably, this November rate is still competitive when compared to the current TTF index, which has risen by 11% due to the Middle East crisis and now stands at around 42 euros per megawatt-hour.

The relatively cost-effective Azeri supply, secured through the long-term contract, has been instrumental in stabilizing prices, partially offsetting upward pressure caused by increased customer demand. However, colder weather and higher consumption for heating mean the share of Azerbaijani gas in the overall supply mix is lower this month, contributing to the price increase from October.