Bulgaria: Wholesale gas price cut at Bulgargaz

, SEE Energy News

Although a new price increase is planned for April, Bulgarian state-owned gas supplier Bulgargaz is planning to propose lower wholesale natural gas price to be applied in March 2021. The statement from the company said that the price for March should be around 15.5 euros/MWh, which is slightly lower than the price valid in February – 15.6 euros/MWh. Also, Bulgargaz said that it is planning to propose a new price hike for April, increasing the price to around 17.1 euros/ MWh. Previously, Bulgarian Commission for Energy and Water Regulation (KEVR) approved a 12.8 % increase of wholesale natural gas price for February 2021, significantly higher than Bulgargaz’ proposal of 5.1 % hike. The price was increased to around 15.6 euros/MWh, excluding VAT and excise duty. In early March, Bulgargaz and Gazprom Export have finalized an agreement on 40.3 % reduction of the price at which Russia supplies natural gas to Bulgaria, backdated to 5 August 2019. Bulgaria was the last of eight EU Member States of Eastern Europe to strike a deal on a price cut with Gazprom, in the wake of a settlement reached between the European Commission and the Russian monopolist on an anti-trust investigation. The agreement with Gazprom prompted the change in determining regulated wholesale gas prices, which is now set on monthly, rather than quarterly basis.