Bulgaria’s Energy and Water Regulatory Commission (EWRC) has approved a new price for natural gas for November, setting it at 68.69 leva per megawatt-hour.
This price does not include additional access, transmission, excise, and VAT fees, and marks a significant increase of almost 8% over October’s rate.
The adjustment comes as colder weather fuels higher demand and as fluctuations in global gas markets influence the cost structure for Bulgaria’s imports.
The latest price calculation incorporates a mix of imported gas, with nearly half of the supply coming from Azerbaijan under a long-term agreement.
Through the “Bulgaria-Greece” interconnector, the contracted Azeri natural gas covers 47.92% of Bulgaria’s monthly gas needs, serving as a stabilizing factor amidst rising prices globally.
Bulgargaz, Bulgaria’s state-owned gas supplier, will offer the adjusted rate to both final suppliers and licensed entities engaged in heat production and transmission, according to the EWRC.
In addition to Azeri gas, the price structure for November includes liquefied natural gas (LNG) acquired from a separate agreement secured via an organized auction with a trader.
This contract, based on predefined minimum delivery prices and payment terms, ensures Bulgaria has access to LNG as a supplementary source, especially important as seasonal heating demand increases.
Furthermore, quantities drawn from the Chiren gas storage facility are also incorporated into this month’s price. Despite the month-on-month price hike, the EWRC underscored that the November rate remains competitive compared to international benchmarks.
The regulator pointed out that the new price is almost 10 leva per megawatt-hour lower than current rates seen on the broader European gas market, particularly against the Dutch Title Transfer Facility (TTF) index, which recently surged by 11% due to geopolitical instability in the Middle East. The TTF benchmark, a key price index for gas trades in Europe, now sits around 42 euros per megawatt-hour.
The inclusion of Azeri gas at favorable rates has been a vital component in Bulgaria’s strategy to shield consumers from more drastic cost increases.
The EWRC credits the long-term agreement with Azerbaijan for helping Bulgaria maintain lower rates despite pressures from both market and seasonal demand shifts.
However, with temperatures dropping, the amount of Azerbaijani gas in the overall mix has decreased for November, leading to greater reliance on higher-priced LNG and storage-sourced gas.
While the November rate offers Bulgarian consumers some cushion from the most severe impacts of international price volatility, the increase still reflects a broader trend of rising energy costs as winter approaches.
Experts note that Bulgaria’s energy strategy, bolstered by diverse supply sources, remains relatively robust but will continue to be tested by external market dynamics and internal consumption needs.
Bulgargaz’s focus, in collaboration with the EWRC, remains on balancing the need for stable and affordable energy supplies while addressing the operational challenges of securing imports amid a volatile global energy landscape.
As the country faces a season of heightened demand, regulators are closely monitoring international developments and preparing for potential fluctuations in upcoming months.