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Bulgaria: Increase in wholesale gas price for December planned at Bulgargaz

30.Oct 2020.

Bulgarian state-owned gas supplier Bulgargaz will propose to the Bulgarian Commission for Energy and Water Regulation (KEVR) that the price of natural gas for December 2020 should be about 14.1 euros/MWh, excluding VAT and excise duty. The company said that it is planning to propose an increase in wholesale natural gas price for December.

KEVR approved the 10 % gas price hike for October, and Bulgargaz already announced that it plans to increase the price by 5.7 % for November. However, despite recent price hikes, it will still be significantly lower compared to November 2019, when it amounted to around 19.4 euros/MWh.

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.