Bulgarian Commission for Energy and Water Regulation (KEVR) has approved a 19 % increase of wholesale natural gas price for December, slightly higher than 18.6 % rise proposed by the state-owned gas supplier Bulgargaz few days earlier.
The wholesale price is increased to around 74.7 euros/MWh, excluding VAT and excise duty. Previously, KEVR approved 47 % decrease of wholesale natural gas price for November.
KEVR Chairman Ivan Ivanov said that natural gas could have been cheaper, but it is not the case, due the expensive gas stored in Chiren facility, which was filled in August and September, when the price of gas was the highest. He said that the approved price is also lower than the hypothetical purchase price in case Bulgargaz had continued to receive deliveries from Russian Gazprom.
KEVR reminded that the authorities are expected to pass legislation which will remove the need for Bulgargaz to release quantities of natural gas for trading on the Balkan Gas Hub. These volumes, which come at very competitive prices, will thus remain for inclusion in the price mix for the regulated market, leading to a reduction in the final cost. For example, in December, this move would have saved Bulgargaz some 8.5 million euros.