“Bulgargaz” Demanded a Shock Increase in Gas Prices by as much as 36%. EWRC approved
"Bulgargaz" asked the Energy and Water Regulatory Commission to increase the price of gas for October by a shocking 36.2% compared to the previous month. This is extremely surprising, because the previous request was for a jump of "barely" 16%. The nominal expression of the requested increase means that a megawatt-hour will cost a little over BGN 94.
Only about 30 minutes later came the regulator's decision and it was approving. Thus, officially from today EWRC raises the price of gas by these 36.2% for October. The new price enters immediately.
The annual increase compared to the price from last October is 282%, simple math shows.
"The increase in the price of natural gas for October reflects the trend of continuing sharp rise in the prices of natural gas on the international gas markets. The data show that in September the prices of natural gas in these markets increased by over 50%. Bulgargaz EAD, the price that the company offers for the Bulgarian market is about 20% lower than the prices of the European gas hubs, and since the beginning of 2021 the consumers in our country have paid BGN 140 million less compared to with consumers in Europe ", reads the decision of the regulator.
The new numbers mean that we will witness a record increase in fuel prices in history. For now, the increase does not affect household consumers, but their bills will be "inflated" after January 1, 2022.
According to Bulgargaz, the reason is the jump in the international spot markets, where a new record of 100 euros per megawatt-hour was set.
The price is inflated in Europe by Gazprom's supplies. At the moment, Azeri gas is almost 50% cheaper, but Bulgaria cannot import its entire agreed amount due to the fact that the interconnector with Greece is not ready yet.
That if the connection was built, gas would be cheaper, confirmed the head of BGZ Nikolay Pavlov. However, he declined to say how much less.
The good news today is that BGZ has signed a contract with Azerbaijan to continue partial deliveries through the other point in Greece and promises to try to import even larger quantities. This may lead to a reduction in the price for next month, but Nikolai Pavlov refused to commit to such an assumption.
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