Bulgargaz seeks 20% increase in natgas price for Sept

Bulgargaz seeks 20% increase in natgas price for Sept

Bulgarian public gas supplier Bulgargaz said it requested the country's energy regulatory body to approve an increase of the wholesale price of natural gas for September to 22.46 levs ($13.65/11.48 euro) per MWh, excluding VAT and excise duty.

The request was submitted to the Energy and Water Regulatory Commission (EWRC) on September 11, Bulgargaz said in a statement on Friday.

The wholesale gas price for August endorsed by EWRC last month was 18.67 levs per MWh, excluding VAT and excise duty - 2.25% lower than the price valid for July.

EWRC will issue a decision regarding the proposed increase of wholesale gas price for September at a closed-door meeting scheduled for September 16, it said in a notice on Tuesday.

Bulgargaz said in a separate statement in Friday it proposed a further 10.6% increase in the gas price to 24.84 levs per MWh, to be valid in October. The projected price increase for October is based on the values of the constituents of the pricing formula as at September 9, Bulgargaz said, adding that it will submit its final proposal on October 1.

The public gas supplier also intends to propose a further hike in the wholesale price of natural gas to 26.25 levs per MWh, to be valid for November, it said in another statement on Friday.

Last month, Bulgargaz explained that the proposed price increase for September is due to a 45% jump in spot prices on European natural gas markets in the August 1-10 period.

Under changes to Bulgarian energy regulations introduced earlier this year Bulgargaz is required to set the wholesale gas price monthly instead of quarterly.

Bulgaria currently imports almost all of the natural gas it needs from Russia. The government has said it intends to diversify half of the country's gas imports by the end of this year.

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