Bulgaria Approves Lower Natural Gas Price for September, Down 2.5%

The Energy and Water Regulatory Commission (EWRC) has approved a lower natural gas price for September, setting it at 60.52 leva per megawatt hour (MWh), or 30.94 euros/MWh, excluding costs for access, transmission, excise, and VAT. Bulgargaz EAD will sell gas at this rate to end suppliers as well as licensed producers and distributors of heat energy, the regulator announced.

This price represents a decrease of roughly 2.5 percent compared to August, when the gas price stood at 62.09 leva/MWh, excluding the same additional charges. The reduction follows a detailed analysis of current data submitted by Bulgargaz EAD, taking into account both contracted supplies and market conditions.

A significant part of the price calculation reflects the entirety of Azerbaijani natural gas delivered via the Bulgaria-Greece Interconnector (IGB) under the long-term agreement with Azerbaijan. These volumes cover a substantial portion of domestic consumption and have been instrumental in achieving a favorable price for September. Bulgargaz has also secured additional liquefied natural gas (LNG) supplies for the month, purchased through contracts with traders following an organized auction, which included requirements for minimum supply prices and proposed payment methods.

The approved gas price encompasses multiple components: the cost at the entry point to the transmission networks, the public supply activity component under Article 17, paragraph 7 of the National Gas Supply and Distribution Act, and the compensation for storage costs under Article 11a, paragraph 2 of the same law. These storage costs relate to maintaining gas in the Chiren facility in accordance with obligations under the Emergency Action Plan.

The supplied quantities are intended to cover the commitments of the public supplier for September, including deliveries to end suppliers, district heating companies, and industrial clients under bilateral agreements, ensuring that both household and industrial demand is met at the new regulated rate.