CEWR confirmed the price of natural gas for the month of January at BGN 77.60 per megawatt hour
The regulator found out that the total estimated quantity for the domestic market was provided by three different sources of supply. The price mix for the month of January includes the entire agreed amount of Azeri natural gas delivered via the "Bulgaria - Greece" (IGB) interconnector, according to the current long-term contract with Azerbaijan. These quantities cover 40.33% of the consumption for the month and are of key importance in achieving favorable prices for the blue fuel.
According to a CEWR announcement from January 1, 2024, the Commission for Energy and Water Regulation approved the price of natural gas for the month of January in the amount of BGN 77.60 per megawatt hour (MWh), excluding access, transmission, excise and VAT prices. At this price, Bulgargaz JSC will sell natural gas to final suppliers and to persons who have been issued a license for the production and transmission of thermal energy.
The approved price of natural gas includes the component price of natural gas at the entrance of gas transmission networks, the component for the activity "public supply" under Art. 17, para. 7 of the НРЦПГ (Ordinance for the Regulation of the Prices of Natural Gas) and the component for compensating costs under Art. 11a, para. 2 of the НРЦПГ, covering the costs of "Bulgargaz" JSC for storage of quantities in the gas storage facility in "Chiren", in fulfillment of obligations under the Emergency Action Plan.
The Commission approved the price after an analysis of the current data submitted today by Bulgargaz JSC, forming the price of natural gas for the month of January. They take into account quotations on the international gas markets until December 31, 2023 inclusive.
The regulator found out that the total estimated quantity for the domestic market was provided by three different sources of supply. The price mix for the month of January includes the entire agreed amount of Azeri natural gas delivered via the "Bulgaria - Greece" (IGB) interconnector, according to the current long-term contract with Azerbaijan. These quantities cover 40.33% of the consumption for the month and are of key importance in achieving favorable prices for the blue fuel.
"Bulgargaz" has concluded a contract for the supply of liquefied natural gas (LNG) with a trader from the region for the month of January, after a tender procedure, with requirements for a minimum delivery price and a proposed method of payment. In the price mix, the public supplier has also included quantities of natural gas extracted from the Chiren natural gas storage facility.
The secured quantities cover the commitments of the public supplier for the month of January - to final suppliers and heating companies, as well as the quantities under bilateral contracts with industrial customers.
The approved price of BGN 77.60/MWh is 11.31% lower than the price of natural gas in December, which was BGN 87.50/MWh.
"The reduction in the price of natural gas at the height of the heating season is good news for all Bulgarian consumers who consume blue fuel", commented the Chairman of CEWR Assoc. Ivan Ivanov at the open meeting on 29.12.2023. At the height of the heating season, the reduction by 11.3% favors industry and households using natural gas directly.
CWER's decision to approve the price of natural gas for the month of January 2024 will be published on the website of the regulator.
Source: https://www.dker.bg