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Bulgaria: Higher wholesale gas price for February and March to be proposed

21.Jan 2021.

The statement from the Bulgarian state-owned gas supplier Bulgargaz said that the price for February should be around 14.8 euros/MWh, which is 7.3 % higher than the price valid in January – 13.8 euros/MWh. The copany is planning to propose higher wholesale natural gas price to be applied in February and March 2021.

Also, Bulgargaz said that it is planning to propose further price hike for March, increasing the price to around 15.4 euros/MWh. Bulgargaz said that it is taking into account the 16 % increase in gas prices on the European markets in the first week of January 2021. Previously, Bulgarian Commission for Energy and Water Regulation (KEVR) approved a 2.8 % decrease of wholesale natural gas price for January 2021, slightly higher than Bulgargaz’ proposal of 2.4 % cut. The price was decreased to around 13.8 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.