Bulgaria utilities regulator cuts gas prices by 1.0% for June
Bulgaria’s utilities regulator has approved a one per cent decrease in the regulated gas price in the country for the month of June, setting the new price at 35.62 euro a MWh, excluding transportation costs, excise and value-added tax.
The Energy and Water Regulatory Commission (EWRC) said that the price of natural gas in Bulgaria was about 10 euro a MWh lower than the reference prices on the TTF gas hub in the Netherlands, which serves as the main European price benchmark.
The price EWRC set for June was higher than in the same month of last year (64.32 leva, or 32.89 euro, a MWh) and June 2024 (59.55 leva, or 30.45 euro, a MWh).
The main reason for Bulgaria’s lower natural gas prices, compared to the TTF reference prices, is the long-term supply agreement with Azerbaijan, the main source of natural gas imports in the country, which is linked to international oil prices rather than gas prices.
EWRC again cautioned that the price of gas under that agreement is due to be updated in July, which will take into account the higher oil prices due to the disruptions caused by the ongoing conflict in the Middle East.
Furthermore, the heightened competition for liquefied natural gas (LNG) deliveries between European and Asian markets, as well as the increased seasonal demand for gas during the traditional summer period when gas storage facilities are being refilled, will put additional pressure on the price of gas in Bulgaria, the regulator said.
The rest of Bulgaria’s domestic gas consumption in June will be covered by LNG deliveries, which state-owned gas company Bulgargaz contracted from suppliers in previous months, EWRC said.
(Photo: Marco Caliulo/sxc.hu)
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