Bulgaria is facing a significant rise in natural gas prices, expected to increase by nearly 11% in December, reaching 76 leva per megawatt-hour before taxes and additional charges.
This price hike is attributed to a combination of regional and global factors that have strained the supply chain and driven up costs for consumers.
During a recent public discussion at the Energy and Water Regulatory Commission (EWRC), Veselin Sinabov, Executive Director of Bulgargaz, detailed the key elements behind the sharp price increase.
Sinabov explained that a drop in average daily temperatures in the region has placed added pressure on natural gas demand, further exacerbating the situation.
As colder weather sets in, the need for heating rises, pushing up consumption and consequently, the price of gas.
Another crucial factor contributing to the price hike is the disruption in gas supplies due to geopolitical tensions. Sinabov pointed to the suspension of natural gas deliveries from Russian energy giant Gazprom to OMV, a major supplier in the region.
This move, alongside the inclusion of Gazprombank in the U.S. sanctions list, has led to higher costs across European gas markets.
The sanctioning of Gazprombank, a key player in the financial transactions of Gazprom’s gas sales, has complicated the flow of gas supplies, leading to price fluctuations.
These developments have not only influenced the pricing on the Title Transfer Facility (TTF) index, which tracks gas prices in Europe, but have also resulted in higher costs at the Balkan gas hub and other regional exchanges.
As European markets face supply disruptions, Bulgaria, like many countries in the region, is experiencing the knock-on effects of increased prices.
The Energy and Water Regulatory Commission (EWRC) is scheduled to make its final decision on the new gas prices on December 1. The proposed 11% increase is expected to have a direct impact on both households and businesses across the country.
With energy costs already rising globally, Bulgarian citizens are bracing for a challenging winter, with higher heating bills likely to strain household budgets.
In addition to the gas price discussions, the EWRC is also engaged in talks regarding the new rates for water and water supply services for the upcoming year.
These discussions have suggested a 19% price increase in the city of Sliven, while residents in Dobrich may see a 15% decrease in their water rates.
These regional adjustments reflect the ongoing efforts by the EWRC to address local service challenges while balancing the impact on consumers.
As Bulgaria continues to navigate the complexities of energy pricing, the final decision by the EWRC on natural gas prices will likely set the tone for future discussions on energy policy.
With the colder months ahead and uncertainties surrounding regional gas supply, the upcoming winter promises to be financially challenging for many Bulgarian households.
The government’s response to these price increases, alongside potential further disruptions in supply, will be critical in determining how citizens and businesses manage the increased cost of living.