/Bulgargaz forecasts 32% reduction in gas prices in February
Bulgargaz forecasts 32% reduction in gas prices in February

Bulgargaz forecasts 32% reduction in gas prices in February

The price of natural gas in Bulgaria may decrease by 32% in February. This is what Bulgargaz EAD says, but clarifies that such a reduction rate will be possible only if the current price levels on the European gas markets are maintained until January 10. This early forecast comes in response to criticism from Prime Minister Kiril Petkov, who saw “deliberate” actions by the EWRC and the public gas supplier in the 30% price jump in January.

By law Bulgargaz must submit a proposal to the energy regulator on the 10th of each month, and then update its report with data for the whole month. The final price proposal for February will be submitted on the 1st of the same month and will take into account the pricing components of long-term contracts as of 31 January 2022

In its statement to the media, Bulgargaz now reminds the Prime Minister that the price of gas is determined by a strictly fixed formula, which includes a number of market indicators.

for providing information, submitting price proposals and for their approval are determined by Ordinance № 2 of 2013 of the EWRC for regulation of natural gas prices. According to the Ordinance, the price of natural gas is changed periodically in accordance with the terms of commercial contracts under which the public supplier buys natural gas for the internal market, “the statement reads.

With regard to the price for January, The company points out that it reflects the price-forming components of the contracts with suppliers as of 09.12.2021. price for December 2021

In the period from 10.12.2021 to 23.12.2021, however, the prices on the European gas supply markets in January 2022 increased significantly – from 93 EUR / MWh at 119 euros / MWh. Only after 23.12.2021 did the prices start to decrease. The reduction after 23.12.2021 was reported in the amended application, which Bulgargaz EAD submitted on 01.01.2022, in accordance with the instructions of the EWRC. It includes the reporting data as of 31.12.2021 of the components forming the price under the long-term contracts, including the increase of the oil component.

The price offered by Bulgargaz for January 2022. is fully calculated in accordance with the Ordinance, which was verified and confirmed by the EWRC with Decision № Ц-1 of 01.01.2022 for approval of the price of natural gas for the regulated market, stated by the public supplier.

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