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EWRC held a meeting on the price of gas for May. The head of Bulgargaz Lyudmil Yotsov joined via Skype
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If the bills are correct, this means an increase of 30%
Bulgargaz is praised for providing alternative sources and for the first time Bulgaria will be energy independent from Russia
Natural gas prices in Bulgaria will catch up with those in Europe due to suspended supplies from Russia. So far this has not been the case, as it has relied on long-term contracts, EWRC chief Stanislav Todorov said on Friday.
Currently, stock prices in Europe are just under 100 euros per megawatt-hour. Todorov predicts that given the large quantities that Bulgargaz buys, the price will be slightly lower due to the trade discount. If the forecasts of the energy regulator are correct, it means an increase of about 30%.
Later, the EWRC clarified that a decision on the price will be made on May 10, and the last application of Bulgargaz will be submitted on May 4.
At the moment, the gas company is still concluding contracts with other suppliers and will pay at what price the supplies are, so that the commission can make inspections.
So far, Bulgargaz has given an estimated price for May of BGN 150.11 per megawatt-hour, which is an increase of 5.27% compared to April.
But now there will be changes due to the suspended supplies from Russia. Until April 27, gas came under two long-term contracts – with Gazprom Export for 90% of the quantities, the rest are Azerbaijani.
Now only the one for the deliveries from Azerbaijan is valid, Todorov pointed out. Due to the annex signed in September 2021, the full quantities cannot be used until the gas connection with Greece is finally completed. Therefore, the suspended Russian 90% will be compensated by other suppliers, but at market prices that are valid in Europe.
Alternative supplies of natural gas have been agreed for May to replace the missing quantities from Gazprom. This was announced by the executive director of Bulgargaz Lyudmil Yotsov.
The EWRC chief praised the gas company for providing alternative sources despite Gazprom’s unilateral termination of the contract. “Even in this emergency, Bulgargaz declares that there will be no restriction on gas consumption, there will be sufficient quantities for all consumers. For the first time, Bulgaria will be 100% energy independent in terms of gas supplies from Russia, “Todorov said.
The EWRC is also working on a report on heat prices, but the tariffs will be clear after the energy regulator rules on how much natural gas will cost in May.
If the report on district heating prices comes out after May 10, then the discussion procedures will take time and possible increase in the price of hot water and heating will be available from June 1.
The intentions of the regulator on what will be done with the price after the lifting of the moratorium are still unclear. According to experts, heating should increase by 40%, because its price is now estimated on July 1 last year, when gas was BGN 47 per megawatt-hour, and now it is BGN 142.49.
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