Sofia, Bulgaria — During an open meeting on Tuesday, Ivan Ivanov, the chairman of the Commission for Energy and Water Regulation (KEVR), announced a forthcoming increase in the price of natural gas.
This decision follows the regulator’s consideration of a proposal submitted by Bulgargaz, the state-owned gas supplier, on May 16. According to Ivanov, the price of natural gas will rise from the current rate of nearly BGN 55 per megawatt hour to BGN 59.55 per megawatt hour in June, marking an increase of slightly over 8%.
Ivanov explained that the regulator’s final decision on the price adjustment will be made in a closed session scheduled for June 1.
He emphasized that this price change is necessary to reflect the current market conditions and ensure the financial stability of the gas supply sector.
The proposed increase in natural gas prices comes at a time when Bulgargaz is actively seeking to diversify its supply sources. The company announced plans to initiate a tender procedure in June for the delivery of 1,000,000 megawatt hours of liquefied natural gas (LNG).
This LNG will be transported through a terminal in Turkey, under an agreement with the Turkish state company Botas. The upcoming tender is a significant step towards enhancing the security and stability of natural gas supplies in Bulgaria.
The move to diversify natural gas sources is part of a broader strategy to mitigate risks associated with dependency on a single supplier.
Bulgargaz aims to ensure a more reliable and flexible supply chain by securing LNG deliveries from Turkey.
This initiative is also expected to have long-term benefits for the Bulgarian energy market, including increased competition and potentially more favorable pricing conditions for consumers.
Energy analysts have noted that the price hike is likely to impact various sectors, particularly industries that rely heavily on natural gas for production processes.
However, they also acknowledge that the move towards diversifying supply sources could ultimately lead to a more stable and resilient energy market.
The anticipated LNG tender is seen as a positive development in this context, offering an alternative to traditional pipeline gas supplies and reducing Bulgaria’s vulnerability to supply disruptions.
Consumers, on the other hand, are expected to feel the immediate effects of the price increase. Households and businesses alike may see higher energy bills starting in June.
The regulator’s decision to approve the price adjustment will be closely watched, with many hoping for measures to alleviate the impact on vulnerable groups.
In the broader regional context, Bulgaria’s efforts to secure LNG supplies from Turkey are part of a growing trend among European countries to diversify energy sources in response to geopolitical tensions and supply uncertainties.
The agreement with Botas underscores the importance of regional cooperation in achieving energy security and sustainability.
As the June 1 decision date approaches, stakeholders from various sectors will be keenly observing the outcomes of KEVR’s closed session. The energy regulator’s decision will not only set the price for natural gas but also signal the direction of Bulgaria’s energy policy in the face of evolving market dynamics and geopolitical challenges.
The planned increase in natural gas prices by over 8% in June reflects the complex interplay of market conditions, regulatory decisions, and strategic efforts to diversify supply sources.
With the final decision pending, the focus remains on ensuring a balanced approach that secures supply stability while considering the economic impact on consumers.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members