The Energy Management Institute informed that the EWRC at a closed meeting has approved a price for the month of April at which the public supplier will sell natural gas to the end suppliers and to the companies which own a license for heat generation and supply. The final price decision of the Commission was adopted in accordance with the changed terms of the contract between Bulgargaz EAD and Gazprom Export.
The price decision was announced by the Chairman of the Commission Assoc. Prof. Ivan Ivanov via an online broadcast on the regulator`s website, which was necessary due to the introduced anti-epidemic measures in EWRC.
The natural gas price approved by the Commission as of April 1, 2020 is 25.20 BGN/MWh (excluding prices for access, transmission, excise duty and VAT). Compared to the current price for the first quarter of 2020 in the amount of 44.04 BGN/MWh the reduction is 18.84 BGN/MWh or by 42.78%. The approved natural gas price of BGN 25.20/MWh includes the gas price component, the component for the activity “public supply” and the component for compensation of expenses arising from imposed obligations to society covering the costs of Bulgargaz EAD for storage at the Chiren underground gas storage facility in fulfillment. The price of natural gas does not include the prices for access and transmission through the gas transmission network, which customers have to pay to their end suppliers.
When approving the price of natural gas, EWRC accounts for the estimated projected quantities of natural gas from imports for the domestic market, the changed terms of the contract between Bulgargaz EAD and Gazprom Export and the average exchange rate of the BNB compared to the foreign currency used to pay for the imported quantities of natural gas.
EWRC`s decision to approve the price of natural gas from 1 April 2020 is published on the regulator`s website: http://www.dker.bg/uploads/reshenia/2020/res_c-10_20.pdf
Source: Energy management institute