Financial and business news from Bulgaria

By over 34 per cent, the price of gas has been reduced retrospectively for August and September 2019.

This week, the EWRC will decide the cheaper rate by the end of 2019.
By more than 34% the price of natural gas has been reduced retrospectively from 5 August and for September. This came with a decision of the Energy and Water Regulatory Commission in a closed session today. This is the first step in the cost of gas and heating 8 months back so that people who are on heating and blue fuel can get the money that Gazprom reimbursed to Bulgargaz and it is on the accounts of the Bulgarian company.

With amendments to the Energy Act of 24 April, parliament obliged the regulator to reduce gas prices by 8 months, after changing the formula for calculating how much gas should cost and the agreement between Bulgargaz and Gazprom exports. The new method of calculation gives the price of gas hubs in Europe and it applies from 5 August 2019. This requires a new calculation of prices by 31 March this year for both gas and heating.

This is EWRC's first decision on the price of gas retroactively.

Thus, from 5 to 31 August 2019 the cheaper of natural gas is by 34.79%, or by 15.62 BGN per megawatt hour and the price is 29.28 BGN per MWh. It does not include access and transmission rates over the gas transmission network.

By its second decision, the Commission also established the price for 1 to 30 September 2019, it is 29.49 BGN per megawatt hour (excluding access, transfer, excise duty and VAT prices). This is a decrease compared to the current before by 15.41 BGN per megawatt hour, or by 34.32%.

This week, the EWRC will hold closed meetings to adopt final decisions in relation to applications submitted by Bulgargaz for gas prices for other past periods - October, November and December 2019. After their adoption, the committee's decisions will be published on the regulator's website.

EWRC performs an analysis of the impact of changed gas prices during the period from August 2019 to 31 March 2020 on the prices of heat and electricity produced by high-efficiency cogeneration heat plants. In this respect, the regulator will adopt a separate decision on the modification of heat and high-efficiency electricity prices for the specified period.