Bulgaria’s energy regulator, the Commission for Energy and Water Regulation (KEVR), has approved a 4.5% increase in the regulated wholesale natural gas price for August. The new level is set at approximately €39.40/MWh, excluding VAT and excise duties. The adjustment follows a 5.84% increase applied in July.
The KEVR decision reflects a change in the procurement strategy of state-owned supplier Bulgargaz. The company revised its initial August supply plan after deliveries from Azerbaijan were reduced. Bulgargaz had originally planned to cover the shortfall by withdrawing gas from the Chiren underground storage facility.
Procurement shift from Chiren to Turkey
After the reduction in Azerbaijani deliveries, Bulgargaz decided to preserve domestic storage levels. Instead, it planned to purchase replacement volumes from Turkey. This change affected the regulated price because imported replacement gas was more expensive than withdrawing already-stored volumes.
KEVR approved an increase slightly below the level requested by Bulgargaz in its revised submission. The decision also links short-term tariff protection with supply security later in the year. Using Chiren would have reduced immediate procurement needs but would have lowered gas availability for the winter heating season.
Implications for power and regional gas pricing
Bulgaria’s direct exposure to gas used in electricity generation is smaller than that of Greece or Romania. Nuclear and coal plants dominate dispatchable generation in Bulgaria, limiting how gas price changes feed directly into power costs. Gas pricing nonetheless affects district heating, industrial users, and balancing generation.
The regulated price of €39.40/MWh remains below the broader Central European gas level observed in early August. Successive increases in July and August indicate renewed procurement pressure during the summer period. The commercial impact is tied to Bulgaria’s approach to protecting stored volumes and using cross-border supply flexibility during the year’s warmer months.
