Gas price may rise by more than 14% as of January 1

At an open-door meeting on Wednesday, the Energy and Water Regulatory Commission (EWRC) discussed a report concerning a December 10 proposal by state-owned natural gas company Bulgargaz about the price at which it will sell natural gas to end-suppliers of gas and heating utilities. The meeting was held partly online, partly in person.

Based on an analysis of Bulgargaz data and documents and after calculations in accordance with the pricing model, the EWRC report recommends the price of natural gas to become 117.12 leva per megawatt-hour (exclusive of access, transfer, excise duty and VAT costs) as of January 1, 2022. The December 2021 price approved by the regulator is 102.33 lv/MWh. This means that the price may increase by a little over 14 per cent.

Bulgargaz Executive Director Nikolai Pavlov commented that the price of natural gas on the Bulgarian market in January 2022 is expected to be somewhat higher than proposed by the company earlier on. An updated proposal to be submitted to the EWRC on the morning of January 1 will take account of all relevant changes which will have occurred between December 10 and 31, Pavlov explained. He noted that gas prices on European markets have increased. Oil products have appreciated too. "There is no way we can keep down the gas price on the Bulgarian market because the rates are dictated by factors outside the country and Bulgargaz cannot help reckoning with them," Pavlov said.

He noted that despite the spike, Bulgargaz will continue to sell gas to its clients at considerably lower prices than those in the region and in Europe.

The final decision on the gas price as of January 1, 2022 will be made by the EWRC at a closed-door meeting on that date, January 1, EWRC Chairman Ivan Ivanov said.