Bulgarian Commission for Energy and Water Regulation (KEVR) has approved a 31.7 % increase of wholesale natural gas price for July, roughly the same as proposed by the state-owned gas supplier Bulgargaz.
The wholesale price is increased to around 95.2 euros/MWh, excluding VAT and excise duty. Previously, KEVR approved 13 % decrease of wholesale natural gas price for June.
The statement from the regulator said that the July price is based on contracts with several suppliers, including companies from southeastern Europe. The higher natural gas price in Bulgaria reflects the global trend, resulting from higher demand and lower supply due to the war in Ukraine. A number of other European countries are also forced to sign short-term supply contracts due to sharply reduced or diminished gas supply from Russia, rising energy insecurity and an imbalanced gas market, resulting in price increases.
KEVR’s said that the price calculations include the entire amount under the contract for the supply of natural gas with the company from Azerbaijan. The necessary amount of gas for July is also partly ensured by Bulgargaz through a contract for the supply of liquefied natural gas (LNG).
KEVR also reiterated that Bulgargaz needs to sign long-term contracts for alternative gas deliveries with at least three different suppliers in the coming months to ensure security of supply and stable prices for business and retail consumers.
Bulgaria’s long-term contract with Russian Gazprom expires in December. In late April, Gazprom unilaterally suspended gas supply to Bulgaria citing the country’s refusal to pay in rubles as the reason. Bulgarian authorities said earlier that they do not plan to negotiate new gas supply deal with Gazprom.
Azerbaijan exported 160 million cubic meters of gas to Bulgaria in the first half of 2022 and plans to export a further 600 million by the end of the year, Bulgaria has a long-term contract with Azerbaijan for the supply of 1 billion cubic meters of gas per year, and with the newly commissioned gas interconnection with Greece it could receive the entire amount.
Public supplier Bulgargaz proposes the new wholesale gas price each month, which has to be approved by KEVR.
