Bulgaria: Wholesale gas price increase approved by KEVR

, SEE Energy News

A 20 % increase of wholesale natural gas price for June has been approved by the Bulgarian Commission for Energy and Water Regulation (KEVR). The increase is significantly higher than 13 % hike requested by gas supplier Bulgargaz. The price for June 2021 is also 122 % higher compared to the same month last year. The wholesale price is increased to around 23.2 euros/MWh, excluding VAT and excise duty. Previously, KEVR approved 13.5 % increase of wholesale natural gas price for May. KEVR listed three reasons for the natural gas price rise: the ongoing increase of prices on international gas markets, the fact that Bulgargaz has had to purchase the amounts of gas it needs at spot prices from other suppliers because the TurkStream gas pipeline is being repaired during June and the smaller amounts of gas from Azerbaijan entering Bulgaria at Kulata-Sidirokastro interconnection point than those capable of being transmitted through Grece-Bulgaria gas interconnection (IGB pipeline) between Komotini and Stara Zagora, whose commissioning has been postponed for mid-2022. In March 2020, 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.