Natural Gas Price Goes Up 2.75% in Q1 of 2018 The price of natural gas goes up by 2.75 per cent in the first quarter of 2018. The increase was approved by the Energy and Water Regulatory Commission after an application by public gas supplier Bulgargaz EAS. The regulator's decision sets the Q1 price at 52.65 leva per 1,000 cu m or 33.39 leva/MWh (pre-excise and VAT). It is 2.75 per cent higher than the price for the last quarter of 2017 and is formed on the basis of the applicable pricing model. The approved new price includes a component for "public supply" (4.76 leva/1,000 nm3) and a component for "public obligation" (1.35 leva/1,000 nm3) which covers the costs of the operator for gas storage in the Chiren gas storage facility according to an emergency action plan. The prices does not include the price of access to, and transmission along the gas transmission network and clients should pay these to the end-suppliers as per the approved pricing model. The 2.75 per cent increase is not going to drive up the price of heating energy during the ongoing heating season. The price of electricity for household and non-household users on the regulated market will stay unchanged, said the regulator.
Source: Monitor (02.01.2018)

Bulgaria's Bulgargaz payments to Petroceltic frozen over dispute with third party Bulgarian public gas supplier Bulgargaz said on Tuesday that its payments to UK-headquartered oil and gas company Petroceltic under a contract for natural gas deliveries have been frozen in relation to forthcoming claims against Petroceltic. Petroceltic has a 100% operated interest in three producing gas fields and one field under development in the Galata Exploration Block, located in the Bulgarian sector of the Black Sea. The frozen payments were due on 2 November 2017 and onwards, Bulgargaz said in a statement. As a result, Petroceltic has halted gas supplies to Bulgargaz since the beginning of November 2017, the Bulgarian company said. On January 5, Bulgargaz was asked by Petroceltic creditors - Cayman Islands-registered companies Worldview EHS International Master Fund, Worldview Economic Recovery Fund and Plutos Agency - to transfer the frozen payments into a depository account. Thus far, Bulgargaz has not been informed of a change regarding the reason for the freezing of its payments, it said. Bulgaria imports almost all of the natural gas it needs from Russia via a pipeline crossing Ukraine, Moldova and Romania.
Source: Capital (24.01.2018)

Bulgargaz plans to propose 6.99% hike in wholesale gas price in Q2 Bulgarian public gas supplier Bulgargaz said on Friday it plans to propose a 6.99% increase of the wholesale price of natural gas for the second quarter of 2018. According to the proposal, which Bulgargaz has to submit to the energy regulator for approval, the price will grow by 24.64 levs per 1,000 cu m to 377.29 levs ($236.5/192.9 euro) per 1,000 cu m, excluding VAT and excise duty, Bulgargaz said in a statement. Bulgargaz will submit its final proposal on March 9, it said. Bulgarian energy regulations require Bulgargaz to set the gas price quarterly, taking into account global oil prices and the lev/dollar exchange rate. The Energy and Water Regulatory Commission (EWRC) has the final say on the proposed change in the wholesale price, at which the state-owned company sells natural gas to end-suppliers and customers directly connected to its transmission network. Bulgaria imports almost all the natural gas it needs from Russia via a pipeline crossing Ukraine, Moldova and Romania.
Source: Dnevnik (12.02.2018)

Bulgargaz proposes 4.82% hike in wholesale gas price in Q2 Bulgarian public gas supplier Bulgargaz said it is proposing to increase by 4.82% the wholesale price of natural gas for the second quarter of 2018. According to the proposal, which Bulgargaz has submitted to the energy regulator for approval, the price has to rise by 17.01 levs per 1,000 cu m to 369.66 levs ($232.8/189.0 euro) per 1,000 cu m, excluding VAT and excise duty, Bulgargaz said in a statement on Friday. Bulgargaz announced last month it was going to seek a 6.99% increase in the wholesale price of natural gas in the first quarter of 2018. Bulgarian energy regulations require Bulgargaz to set the gas price quarterly, taking into account global oil prices and the lev/dollar exchange rate. The Energy and Water Regulatory Commission (EWRC) has the final say on the proposed change in the wholesale price, at which the state-owned company sells natural gas to end-suppliers and customers directly connected to its transmission network. Bulgaria imports almost all the natural gas it needs from Russia via a pipeline crossing Ukraine, Moldova and Romania.
Source: econ.bg (12.03.2018)

Regulator Suggests Natural Gas Price to Rise by 2.6% as against Bulgargaz's 4.82% The Energy and Water Regulatory Commission Monday discussed a report on Bulgargaz's proposal for natural gas prices in the second quarter. Those are the prices at which the public provider sells natural gas to end suppliers and customers linked to the gas transmission network. The report drawn up by a working group suggests a gas price of 361.82 leva per 1,000 cubic metres or 34.04 leva/MWh (exclusive of excise duty and VAT). This is 2.6 per cent more than the price in the first quarter. For its part, Bulgargaz has asked for a 4.82 per cent price hike. The regulator arrived at the lower figure by making a negative adjustment of 5,284,583 leva to offset the difference between Bulgargaz's projected and reported expenditures on gas supply to the entry of the transmission network last year. The public provider objected to the working group's proposal for the second quarter, arguing that the company would sustain losses. The participants in Monday's meeting have until March 27 to submit written opinions on the report of the working group. The final decision will be made at a closed-door meeting on March 30. Heat energy prices will remain unchanged until the end of the quarter. The price of electricity produced from natural gas by high efficiency co-generation of power and heat will also remain unchanged.
Source: mediapool.bg (27.03.2018)

Bulgaria's Overgas to keep gas prices flat in Q2 Bulgarian gas retailer Overgas will not increase gas prices for its clients in the second quarter of 2018 despite the increase in the wholesale prices approved by the country's regulator. "There will be no change in gas prices for Overgas Mrezhi customers, although the [wholesale] prices have been hiked as of April 1 under a decision of the Energy and Water Regulatory Commission," the company said in a statement. On Friday, Bulgaria's energy regulator said it has approved a 2.6% increase in the wholesale price of natural gas for the second quarter of 2018. The gas price in the period April-June will be BGN 361.82 per 1,000 cubic metres, VAT and excise excluded. Earlier in March, state-owned gas monopoly Bulgargaz proposed to the energy regulator to increase the price at which it sells natural gas to end suppliers by 4.82% to BGN 369.66 per 1,000 cu m. Bulgaria imports almost all the natural gas it needs from Russia through a pipeline crossing the territories of Ukraine, Moldova and Romania.
Source: Sega (03.04.2018)

Bulgargaz to propose 15.7% hike in wholesale gas price in Q3 Bulgarian public gas supplier Bulgargaz has said it plans to propose a 15.69% increase in the wholesale price of natural gas, to be valid in the third quarter of 2018. According to the draft proposal, the price will rise by 56.77 levs ($34.8/29.0 euro) to 418.59 levs per 1,000 cu m, excluding VAT and excise duty, Bulgargaz said in a statement on Friday. Bulgargaz will submit its final proposal for approval by the energy regulator on June 8. Bulgarian energy regulations require Bulgargaz to set the gas price quarterly, taking into account global oil prices and the lev/dollar exchange rate. The Energy and Water Regulatory Commission (EWRC) has the final say on the proposed change in the wholesale price, at which the state-owned company sells natural gas to end-suppliers and customers directly connected to its transmission network. Bulgaria imports almost all the natural gas it needs from Russia via a pipeline crossing Ukraine, Moldova and Romania.
Source: mediapool.bg (14.05.2018)

Regulator Suggests 11% Hike of Natural Gas from July The Energy and Water Regulatory Commission (EWRC) has suggested an increase in the price of natural gas by 10.81 per cent from July 1, lower than the 18,5 per cent requested by public supplier Bulgargaz. This has transpired from a report published on Friday on the website of the Commission. Bulgargaz will sell natural gas ar 400.95 lv per 1,000 cu m or 37.79 lv per MWh, excise duty and VAT tax excluded. Access and transit fees are not factored in the price. Bulgargaz requested a price of 427.12 lv per 1,000 cu m, which is an increase by 18.05 per cent from the current prices of 361.82 leva. The public supplier motivated the hike with the expected higher prices of alternatives fuels on the global markets respectively by 11 per cent for mazut and 11.56 per cent for gas oil which will lead to higher delivery prices by Gazprom Export by 11.5 per cent. The Commission's experts agreed with the estimations of the gas supplier but argue that there are advance receipts from previous periods, so the increase wonÒt be so steep. EWRC's proposal will be discussed by the end of June. The price of heat energy will likely go up as well.
Source: Monitor (18.06.2018)

BEH will issue Eurobonds The Bulgarian Energy Holding (BEH) started a series of meetings with international investors in connection with the planned issuance of Eurobonds worth EUR 500 mln. The series of meetings will begin in London and will continue in Frankfurt and Vienna. Following the successful conclusion of the negotiations, BEH will issue new 7-year and 10-year Eurobonds. BEH has hired Citigroup and First Financial Brokerage House to direct the forthcoming bond issue that is needed to refinance the company's 5-year Eurobond debt of EUR 500 million due in November this year. It will refinance the EUR 500 mln bond loan that the holding company issues in 2013 at a yield of 4.25%. BEH also sold a second bond issue two years ago worth EUR 550 million at a yield of 4.88%, maturing in 2021. The expectations are by refinancing the first BEH emission to save service fees. The holding plans to double listing of the new Eurobonds on both the Bulgarian and the Irish Stock Exchange. Through BEH the state owns the biggest energy companies in Bulgaria for production, supply and transmission of electricity, natural gas and lignite coal - Kozloduy NPP, Maritza East 2 TPP, NEK, ESO, Bulgargaz, Bulgartransgaz and Mini Maritsa East.
Source: Standart (18.06.2018)

Gas up 10% from July, electricity by about 5% The price of gas will be increased by about 10% starting July 1, according to a report by the Energy and Water Regulatory Commission (EWRC), which has to be finally adopted by the end of the month. Meanwhile, electricity will see an increase as well. Experts estimate that the increase may be on average about 5%. Experts from the EWRC work group have, however, curtailed the request of the state-owned Bulgargas, which requested an 18% increase a month ago. The company motivated the required appreciation with the expected higher prices of alternative fuels on world markets - 11% of fuel oil and 11.5% of gas oil respectively. This in turn would lead to an increase in Gazprom Export's delivery prices of about 11.5%. However, experts of EWRC believe that Bulgargaz has overcollected income in previous years, and so the appreciation cannot be so great. This is not the first time that the EWRC cuts the public provider's request. At the end of March, for example, Bulgargaz threatened the regulator with court actions, as they demanded an increase of 4.85%, but received almost half of it - 2.6% from April 1.
Source: Sega (19.06.2018)

Heat supply about 30% up per year Prices of hot water and heat supply will rise 7% from July 1st. Electricity will also rise with a higher percentage than previously expected for less than 2% on average, but still the specific numbers are not determined. This was announced by the Chairman of the Energy and Water Regulatory Commission (EWRC) Ivan Ivanov. Thus, for only one year the price of heating and hot water will increase by more than 30%. The latest drastic rise was in April 2017, when heat supply gained an average of 22%. As before, the reason now is the new gas prices. After yesterday's open discussion at the KEVR it became clear that the fuel increase will be 10.81%. Initially, the state-owned Bulgargaz demanded an increase by 18% from KEVR and motivated its demand with the expected higher prices of alternative fuels on the world markets - fuel oil and gas oil. However, according to the regulator, there is no reason to do so. Experts of the commission decided that the company had a surplus of BGN 13 million for a previous period and now it has to be compensated. "The revenues, on the basis of which the regulator did not approve Bulgargaz's request for the new gas prices from July 1, are on paper only," said Bulgargas chief Nikolay Pavlov.
Source: Sega (26.06.2018)

Energy Regulator Increases Electricity, Heating Prices as of July 1 As of July 1, the electricity price for household consumers increases by 2.03 per cent on average and the heating price by 7.33 per cent on average, the Energy and Water Regulatory Commission (EWRC) said Sunday. The new prices are effective until June 30, 2019. The increase of the heating price is linked to a raise of the natural gas price by 10.81 per cent as of June 29. Bulgargaz had requested an increase by 18.5 per cent. Emerging from an EWRC closed sitting on electricity and heating prices in the next pricing period, EWRC Chairman Ivan Ivanov told reporters that the electricity price will increase by 1,75 per cent for CEZ, 1.82 per cent for EVN, and by 2.78 per cent for Energo-Pro. The heating price will increase by 7.46 per cent for Toplofikacia Sofia, by 0.94 per cent for EVN Bulgaria Toplofikacia - Plovdiv, and by 4.89 per cent for Veolia Energy Varna, he specified. The detailed decisions are published on the EWRC website. Ivanov said that the new prices are based on clear economic logic. The energy regulator makes decisions based on four key principles: transparency, sustainability, compliance with the law, and equity. The EWRC strictly applies a conservative approach of not allowing abrupt changes in prices, as evidenced by the price raises in the last three years remaining way below the increases in the average and minimum wages, pensions, and annual inflation, he noted. The energy regulator also takes into account what the consumers can afford and, at the same time, the need of sustainable development of companies in the energy and natural gas sector, he added. Asked how the new heating price will affect consumers' bills, Ivanov said that heating is used by only 15 per cent of Bulgarian population; small town and village residents use wood, coal and electricity for heating instead of natural gas. That is why the most important index is the price of electricity, which the EWRC strives to increase as little as possible; however, the energy regulator cannot allow the energy distribution companies to experience severe financial difficulties, he underscored. Citizens protested against the new prices in front of the EWRC building on Sunday. Their posters read, "They are killing us with the electricity, water and heating! Will we pay for air as well?".
Source: Dnevnik (02.07.2018)

The responsibilities of Toplofikatsia-Sofia to Bulgargas The overdue liabilities of Toplofikatsia-Sofia to Bulgargaz rose to BGN 100 million, with the debt accumulated only from September last year to July 2018 being nearly BGN 52 million. This was announced by the executive director of the gas-supply company Nikolay Pavlov. Another BGN 27 million is also due by the district heating companies in Burgas, Pleven and Vratsa. This could make Bulgargaz's payments to its Gazprom supplier difficult, Nikolay Pavlov said. Toplofikatsia-Sofia should pay these overdue liabilities. We expect to pay BGN 40 mln by the end of July, and the rest of the BGN 52 mln accumulated in the autumn-winter season should be paid by the end of August," the head of the gas company said, according to whom the message is clear: “one should pay”. "If Toplofikacia does not pay, Bulgargaz will take action for the compulsory collection of the receivables,” Pavlov explained, adding that the Sofia-based company has been repeatedly warned that it has to pay for the delivery of fuel so that Bulgargaz does not have to collect through court.
Source: National radio (16.07.2018)

The Bulgarian Energy Holding is on its way to take commitments in the BEH Gas case The Bulgarian Energy Holding is in the final stages of taking commitments regarding the BEH Gas case. To this end, the Parliament will instruct the Energy Minister Temenuja Petkova to take the necessary actions to reach an agreement with the European Commission’s case BEH gas. In order to do so, a project-decision will be introduced in the parliament by the members of the parliament of GERB Delyan Dobrev, Valentin Nikolov and Aleksander Nenkov. The project decision will be discussed in the Energy commission of the Parliament on Thursday. The case BEH Gas was initiated by the EC against BEH, Bulgartranzgas and Bulgargas because of suspicions of dominant position in the gas market in Bulgaria. In the arguments presented, the members of parliament point out that in the end of May, the EC reached an agreement with Gazprom in the case of abuse of dominant position in Central and Eastern Europe, without financial sanctions. According to the MPs, the development of the case against Gazprom is similar to the BEH Gas case, because of similar legal classifications of the violations and overlapping market participants who are involved in the cases. Therefore, they believe that there are new circumstances that require the amendment of the previous decision of the National Assembly without its repeal. The previous decision of the Parliament regarding the gas case was taken at the end of November 2017. With it the National Parliament supported the closing of the BEH Gas case without acknowledging any wrongdoing and without assuming responsibility and at the same time committing to uphold any obligations arising from a prohibitive decision, even including commitments regarding any financial sanctions that may arise. This decision was taken after the European Commission rejected on 9 November the commitments made by the Bulgarian side and it became clear that it intends to close the BEH Gas case with a restrictive decision and a financial sanction. / publics.bg
Source: Other (19.07.2018)

Bulgaria will seek an agreement with the EC in the case against the energy holding Bulgaria will seek an agreement with the European Commission on Bulgargaz, Bulgartransgaz and Bulgarian Energy Holding (BEH) case, although at the end of last year the National Assembly banned such actions. GERB deputies Delyan Dobrev, Valentin Nikolov and Alexander Nenkov have submitted to Parliament's cabinet a draft decision, which instructs the Minister of Energy Temenuzhka Petkova to try to reduce the sanction, which may be over EUR 300 million. The European Commission has launched criminal proceedings against Bulgaria after the private company Overgas filed a complaint in 2010 that state-owned companies, which have a monopoly over pipes, have restricted its access to gas infrastructure and the gas market. In 2015, the investigation concluded that there were violations, and Bulgaria was offered to present a plan for their termination under threat of sanctions. The European Commission was willing to reduce the fine significantly if certain measures were implemented. One of them is the recognition of guilt, which would reduce the sanction to EUR 70 million. Another measure was for the state to privatize a majority stake in Bulgartransgaz.
Source: expert.bg (20.07.2018)

Bulgargaz predicts a gas price jump of over 14% The state-owned company Bulgargaz predicts an increase in gas prices for the fourth quarter of the year from BGN 458.44 per 1000 cubic meters without access prices, transmission, excise and VAT rates. Compared to the current price, this represents an increase of 14.34%. The regulator will make the final decision on the new gas price on September 30th. According to the requirements of the Energy Act, a month before applying for a tariff change, Bulgargaz has to announce its intentions publicly. If the request for a price increase is approved by the KEVR, it will be the fourth consecutive one for this year. The 1 January increase was 2.75% (Bulgargaz requested 2.83%), it rose by 2.6% from April 1, while the state company's request was then 4.82%, and on July 1 the price was raised by 10.81% on demand over 15 %.
Source: Capital (13.08.2018)

Natgas Prices to Rise as from October 1 The price of natural gas will definitely increase, effective October 1, because the international market price of crude oil and the dollar exchange rate are rising, Bulgaria's Energy and Water Regulatory Commission (EWRC) Chairman Ivan Ivanov told journalists on Thursday. He declined to comment on the exact amount of the hike. "The Commission has very little manoeuvring room. We must above all check the method of calculations and determine whether the price asked by Bulgargaz is consistent with their natural gas supply contract with Gazpromexport," Ivanov said. He expects to receive Bulgargaz's final price application on September 10. The gas company now forecasts a 15 per cent increase of natural gas prices for the last quarter. The EWRC Chairman explained that the Commission will reckon with the application, but its experts will carefully analyze and check it and by the end of September the regulator will pronounce on the natural gas price as from October 1. Ivanov pointed out that if the price of heat will have to be increased, this will happen at the start of the next heating season. He said that the EWRC has numerous instruments to impact the price of electricity, but it can do little about the price of natural gas, which in turn influences the price of heat. Later on Thursday, the EWRC discussed an August 2 application by Bulgartransgaz for an increase of the cost component of the natural gas price for the period between October 1, 2018 and April 14, 2019 from 0.78 leva/MWh to 1.52 leva/MWh. The gas-transit and gas-transmission network operator also proposed a reduction of the 8 per cent adjustment for the 2018/2019 gas year so as to ease the financial burden on gas-transmission system operators. Danail Dikov of Bulgartransgaz explained that the increase of the cost component was due mainly to a discrepancy in the forecast imbalances. He said that this is not supposed to lead to a shock rise in the price. During the public discussion, most of the industrial uses of gas transmission networks opposed the proposed increase. EWRC Chairman Ivan Ivanov asked everybody to set forth their arguments in writing, so that the Commission experts can take them into account. The EWRC will adopt its decisions at a meeting behind closed doors on September 14.
Source: Capital (24.08.2018)

Bulgargaz demanded an increase in gas prices by 14% by 1 October The public state provider, Bulgargaz, has proposed to the Energy and Water Regulation Committee (CEWR) a price increase of natural gas by almost 14% from 1 October. "The increase is due to the higher import prices of imported gas, the higher exchange rate of the US dollar compared to the leva, as well as the accumulated effect of the approved sales price for the third quarter of 2018, lower than the costs for delivery", argued their offer from the company. As BANKER has already written, this will inevitably affect the prices of hot and cold water in the big cities. According to the regulations of the Commission for Energy and Water Regulation, any increase in the price of natural gas and hot water by more than 5 percent. At the end of August, the chairman of the energy regulator Ivan Ivanov announced that this time the committee will have no mechanism to reduce the price increase requested by the company. Ivanov said the KEVR would comply with the declaration, but it will be thoroughly analyzed and verified by the experts, and by the end of September there will be a decision on the gas price in the last quarter of 2018. It is perfectly possible for the steam and heat to rise by 7-8% from October, experts say. So cumulatively for this summer, district heating services have increased by nearly 20 percent. The heating of the hot water and the heating for the subscribers of Toplofikatsiya Sofia is the same, which is the largest company of its kind in Bulgaria.
Source: Dnevnik (11.09.2018)

Bulgargaz's demand for natural gas prices is justified, according to a report Bulgargaz' demand for rise in gas prices to 13.89% in the fourth quarter is justified, the expert's report of the Energy and Water Regulatory Commission (CEWR), which examined the state gas supplier's application, said. The report states that the prices of alternative fuels, which depend on Gazprom's export price, have risen by an average of 7% per year. The report also takes into account the costs of Bulgargaz for transit fees, for the public supply component, for storage, to compensate for expenses resulting from imposed obligations to society. Based on the submitted data and documents and the calculations made, the price at which the public supplier has to sell natural gas to the end suppliers and customers connected to the gas transmission network in the fourth quarter of 2018 amounts to 456.65/1000 cubic meters or 43.28 BGN / MWh (excluding excise duty and VAT). Their report will be discussed at an open session of the regulator on September 25th.
Source: Dnevnik (18.09.2018)

Prices of Natural Gas in Bulgaria with Record Rise as of 1 October The Working Group of the Energy and Water Regulatory Commission proposes to increase its natural gas price by 13.89% from 1 October. Unlike before, the experts' analyzes have confirmed Bulgargaz's request for price increase, which was introduced on September 10th. Thus, at the forthcoming regulator meeting on 25 September, there are no disputes with the gas supplier, and for consumers this will be the biggest leap in the price of gas since April 1, 2017. This increase will inevitably affect the prices of hot and hot water. "The Commission has much more tools to influence the price of electricity, but not natural gas, hence the heat that is determined on the basis of the price of natural gas," said Ivan Ivanov, chairman of KEVR. Next, but not last, appreciation For the fourth quarter of the year, for 1000 cubic meters of natural gas, the price will be 456.65 BGN, but not including the tariffs for access, transportation, excise and VAT. "The increase is due to the expected higher supply prices of imported gas, the higher exchange rate of the US dollar against the lev, as well as the accumulated effect of the approved selling price for the third quarter of 2018, which is lower than the cost of delivery, "explained the gas supplier some time ago, and now it is confirmed by the regulator. This will be the fourth consecutive increase in the price of natural gas since the beginning of the year when 1000 cubic meters cost 342.22 leva. However, it will not be the last one since, when determining the price, the KEVR fully applies the existing methodology described in the current contract between Bulgargaz and Gazprom Export. The formula takes into account the fluctuations in the price of oil and the alternative to natural gas fuels in world markets for the past 9 months, as well as changes in the US dollar exchange rate. The regulator's powers are solely to determine whether the application of the public provider Bulgargaz complies with the requirements of Ordinance No. 2 on the pricing of natural gas and the supply contract between the two companies. Steam - even more expensive If on September 30, KEVR finally decided that the price would increase by more than 14%, a new update of the tariffs for heating and high-efficiency electricity, produced by a combined method by natural gas utilities, will be imposed by law. Such is for example "Toplofikacia Sofia". In July, because of the rise in gas prices by just over 10%, the price of heating in the country was raised by an average of 7.33%, so now the growth may be even higher. And ultimately, compared with the previous heating season, the tariffs will be about 15 percent higher.
Source: Capital (19.09.2018)

Bulgaria is finally going to talks with Russia on lower natural gas prices. The first meeting is due on Thursday in St. Petersburg. "The talks start with a delay of nearly five months. Back in May, the European Commission managed to force the Russian gas concern, by agreeing not to impose hefty sanctions, to offer better conditions and lower rates to several Eastern Europe countries, including Bulgaria. It remains unclear why the Bulgarian Energy Ministry and Bulgargaz are starting the talks only now," the story says. It adds that if the two sides fail to come to an agreement, the dispute can be taken to European arbitration to determine what price Bulgaria will pay.
Source: econ.bg (28.09.2018)

EWRC approved an increase in the price of natural gas by 13.89% The Energy and Water Regulatory Commission (EWRC) adopted a decision on the Bulgargaz EAD application for price confirmation for the 4th quarter of 2018 under which the public supplier sells natural gas to the end suppliers of natural gas and customers connected to the gas transmission network. For the approval of the price of natural gas EWRC takes into account the terms of the current contract between Bulgargaz EAD and Gazprom Export and fully implements the Methodology under which the changes in the price of oil and the alternative to natural gas fuels of the world markets for the last nine months, natural gas calorific value, and changes in the US Dollar exchange rate against the BGN. The regulator's powers are solely to determine whether the application of the public provider Bulgargaz EAD meets the requirements of Ordinance No. 2 on the pricing of gas and the supply contract between the two companies. In the decision of the EWRC, the approved natural gas price for the fourth quarter of 2018 amounts to BGN 456.65 per 1000 m3 or 43.28 BGN / MWh (excluding excise duty and VAT).
Source: mediapool.bg (02.10.2018)

BEH took another EUR 50 million loan The state energy company Bulgarian Energy Holding recorded an increase of EUR 50 million on its third issue of Eurobonds, listed on the Irish Stock Exchange (Euronext Dublin) and on the Bulgarian Stock Exchange. Thus, the company's bonds reached EUR 600 million at an annual interest rate of 3.5% and a maturity of 7 years. With the second additional tranche, BEH achieved the planned bond issue and no further increases are foreseen. BEH maintains the same competitive price conditions and timeliness that will allow the company to spread its interest costs more efficiently and over a longer period of time. According to the company, "the second increase in the issue in continuing volatile market conditions confirms investor confidence in BEH as well as the company's good access to capital markets." BEH has a total of about BGN 3 billion in bond loans. These funds were mainly intended for the payoff of the subsidiary NEK. The company has to collect about BGN 2 billion from the energy companies, which it unites. Last BEH bought a debt of BGN 100 million of the Sofia District Heating Company (which is not part of the holding) to Bulgargaz, which is part of the state energy group.
Source: mediapool.bg (08.10.2018)

Bulgaria's TPP Maritsa Iztok 2 to pay 153 mln euro for emission allowances by Mar 2019 Bulgarian state-owned thermal power plant (TPP) Maritsa Iztok 2 will have to pay over 300 million levs ($177.5 million/153.4 million euro) by March 2019 for buying emission allowances, energy minister Temenuzhka Petkova said on Tuesday. A working group within the energy ministry has drafted short and long term measures for strenghtening the financial state of the plant, Petkova said in a statement on Tuesday. The greenhouse gas emission allowances are part of the EU Emissions Trading System, which works on the “cap and trade” principle. Within the cap, companies receive or buy emission allowances which they can trade among themselves as needed. Each year companies must surrender enough allowances to cover all their emissions, otherwise fines are imposed. In the first half of the year, the plant booked 115 million levs in expenses for greenhouse gas emission allowances, according to its interim financial statement. Maritsa Iztok 2 has eight operating units with a total installed capacity of 1,620 MW.
Source: mediapool.bg (17.10.2018)

Bulgargaz planning to propose 4.98% hike in Q1 wholesale gas price Bulgarian public gas supplier Bulgargaz said on Friday that it plans to propose a 4.98% increase in the wholesale price of natural gas, to be valid in the first quarter of 2019. According to the draft proposal, the price will rise by 2.15 levs to 45.44 levs ($26.37/23.23 euro) per MWh, excluding VAT and excise duty, Bulgargaz said in a statement. Bulgargaz will submit its final proposal for approval by the energy regulator on December 11. Bulgarian energy regulations require Bulgargaz to set the gas price quarterly, taking into account global oil prices and the lev/dollar exchange rate. The Energy and Water Regulatory Commission (EWRC) has the final say on proposed changes in the wholesale price, at which the state-owned company sells natural gas to end-suppliers and customers directly connected to its transmission network. Bulgaria imports almost all the natural gas it needs from Russia via a pipeline crossing Ukraine, Moldova and Romania.
Source: Dnevnik (12.11.2018)

Iran Favours Construction of Balkan Gas Hub in Bulgaria Iran is in favour of the concept for building a Balkan Gas Hub at the Bulgarian seaport of Varna, the Energy Ministry in Sofia reported on Tuesday. The matter figured high on the agenda of talks between Energy Minister Temenouzhka Petkova and Iranian Ambassador to Bulgaria Seyed Mohammad Javad Rasouli. Minister Petkova presented to her guest the concept developed jointly with the European Commission and stressed that the project received the Commission's support as important for energy security and trade liberalization in the whole region of Southeastern Europe. Up to now, a feasibility study has been carried out for the gas distribution center, which examines several sources of natural gas deliveries from Russia, the Caspian region through the interconnector with Greece, Romania, as well as possible local extraction from the deep Black Sea, where at present studies are being carried out. Natural gas supplies from Iran, one of the world's leading manufacturers, would be another possible source of power for the Hub.
Source: Standart (14.11.2018)

Bulgargaz EAD Proposes 3.51% Hike of Natural Gas Price State-owned supplier Bulgargaz EAD has approached the Energy and Water Regulatory Commission with a proposal to endorse a price of 44.80 leva/MWh exclusive of VAT, excise duty, network access and transmission charges for the first quarter of 2019. Compared to the current price of natural gas exclusive of VAT, excise duty, network access and transmission charges, the proposed price is increased by 3.51% (or 1.52 leva/MWh). The EWRC has until the end of December 2018 to set the price of natural gas. Bulgargaz EAD representatives recalled that, according to the law, if the price of natural gas is increased by less than 5 per cent, the price of heating will remain unchanged.
Source: mediapool.bg (11.12.2018)

Bulgaria pipeline to face EU scrutiny Bulgaria is to face renewed EU scrutiny over a Russia gas pipeline, four years after its previous project failed. The European Commission would "not support it" if the pipeline did not meet conditions, Maros Sefcovic, the commission vice-president, who is in charge of EU energy policy, has said. The commission would "react within its remits" if Bulgaria harmed EU energy security, he added in remarks to EUobserver on Tuesday (11 December). Bulgaria's 484-km pipeline is to ship Russian gas to Europe by linking with Russia's new pipeline to Turkey, called Turk Stream 2. Sefcovic's warning comes amid Russia's plan to also build a pipeline to Germany, called Nord Stream 2. Its Germany and Turkey pipes go around countries such as Poland and Ukraine. This makes the region, which used to be under Russia's boot, feel less safe by enabling Moscow to cut supplies there while keeping Russian gas flowing to western Europe. And Russian revanchism is stoking those fears, amid military provocations and aggression in the Baltic Sea and Black Sea regions. "Nord Stream 2 and an expanded Turkish Stream pipeline seek to deepen [EU] dependence [on Russia]," a US diplomat, Francis Fannon, said also on Tuesday. "They are political tools ... and the Russian state uses energy for coercive political aims," the diplomat said. Deja vu? Bulgaria's previous project, the more ambitious South Stream pipeline, was to ship gas directly from Russia via the Black Sea. But Moscow abandoned it in 2014 when the EU commission said it violated single market laws. Sofia, where MPs recently approved the Turk Stream 2-link project, has yet to give Sefcovic details of its plan. Its energy and foreign ministries also declined to speak to EUobserver. If Bulgaria's link pipeline was to sell Russian gas to the EU in a new trading hub with other international gas, then it was "a welcomed development," Sefcovic said. But if it simply "evacuated" Turk Stream 2 gas to EU states, such as Austria or Italy, then it was not. "If it turns out the project is a simple transit pipeline, it cannot be part of the Balkan Gas Hub project and the commission will not support it," Sefcovic told this website. "In such a scenario, Turk Stream 2 and its evacuation pipeline would clearly be in competition with other sources and routes of gas coming to the region," he said. Balkan hub The commission earlier financed a feasibility study into the Balkan Gas Hub idea. The hub, in Varna, on Bulgaria's Black Sea coast, could trade gas from Turk Stream 2, as well as EU-backed pipelines to Azerbaijan and Israel - the Southern Gas Corridor and EastMed. It could also trade liquid gas from global markets, in what would create "more diversified, secure supply" for Europe, Sefcovic said. "The commission could only support a scenario under which this [Turk Stream 2] gas is sold at the Balkan Gas Hub ... not simply transported via transit pipelines to western European hubs," he noted. "Once it becomes clear how the [Turk Stream 2] evacuation will be organised, the commission will react within its remits," he said. Sefcovic's remit Bulgaria, the EU's poorest country, would get no European money for the ˆ1.4bn link pipeline if it did not meet conditions, Sefcovic added. It would also receive no EU "regulatory support". "The commission does not see any difference between Turk Stream 2 and its transit evacuation pipelines or Nord Stream 2 and its Eugal onshore connection," Sefcovic said. Eugal is a 480-km German pipeline to link Nord Stream 2 to central Europe, which failed conditions for EU support. The new Russian pipelines are to start supplies in 2020. The commission has a quiver of energy and public procurement laws to fire at onshore EU links. It has also tried to have its say on Nord Stream 2, but its legal remit on Russia's offshore pipelines is in doubt, amid sluggish talks on the subject in the EU Council, where member states meet. US sanctions For its part, the US has threatened fines against EU energy firms who backed Nord Stream 2. It turned up the heat on that and Turk Stream 2 when Fannon, a US energy envoy, spoke to international media in a conference call. "We've made quite clear where we stand on that," he said on the Nord Stream 2 sanctions threat. "We oppose Nord Stream 2 and we would call on all parties to exit the project," he said. "Given Russia's aggression in recent days, this is a good time to spotlight our diplomacy on transatlantic energy security," Fannon added. Russian aggression He spoke after visiting Croatia, the Czech Republic, and Hungary and shortly after Russian warships fired on the Ukrainian navy in the Black Sea area. The Russian pipelines would see Ukraine lose most of its gas transit to the EU, costing it billions, and new suppliers, like Israel, would be locked out of Europe in what was "just an order of math" on supply and demand, Fannon said. "The US and Europe share Western values," but that kind of commerce was "just not consistent with those shared values," the American diplomat said.
Source: money.bg (13.12.2018)

EC Fines Bulgarian Energy Holding Group EUR 77 Mln for Blocking Access to Key Natural Gas Infrastructure The European Commission (EC) Monday said that it has fined the Bulgarian Energy Holding, its gas supply subsidiary Bulgargaz and its gas infrastructure subsidiary Bulgartransgaz (the BEH group) 77,068,000 euro for blocking competitors' access to key gas infrastructure in Bulgaria, in breach of EU antitrust rules. The EC press release quotes European Commissioner for Competition Margrethe Vestager as saying on Monday that consumers in all Member States should enjoy the benefits of an integrated and competitive single European energy market. "For years, Bulgarian natural gas consumers have been denied a choice of suppliers because the BEH group refused to give access to its gas infrastructure to other wholesale gas suppliers. With today's decision, we will promote the development of an open and competitive energy market to the benefit of consumers in Bulgaria, in line with Energy Union objectives," she said. BEH is the vertically integrated incumbent state-owned energy company in Bulgaria. One subsidiary, Bulgartransagaz, controls the gas infrastructure in Bulgaria. Another subsidiary, Bulgargaz, supplies gas to customers in Bulgaria, the press release reads. Monday's decision of the EC finds that the BEH group holds dominant positions both in the gas infrastructure markets and in the gas supply markets in Bulgaria. It also finds that the Bulgarian Energy Holding and its subsidiaries abused their dominant positions by foreclosing entry into the gas supply markets in Bulgaria by unduly restricting access to the infrastructure BEH owned and operated. BEH used the dominant position of one subsidiary, Bulgartransgaz, to protect the near monopolistic position of its other subsidiary, Bulgargaz, on supplying gas. In addition, Bulgargaz hoarded capacity on the only import pipeline bringing gas through Romania to Bulgaria so that it could not be used by potential competitors. Between 2010 and 2015, the BEH group blocked the access to Bulgaria's domestic gas transmission network, the only gas storage facility in Bulgaria, and the only import pipeline bringing gas into Bulgaria, which was fully booked by BEH. Without access to this essential infrastructure, it was impossible for potential competitors to enter wholesale gas supply markets in Bulgaria. This prevented any development of competition and ensured a near monopoly for Bulgargaz. The EC concluded that this behaviour by the BEH group is in breach of Article 102 of the Treaty on the Functioning of the European Union, which prohibits the abuse of a dominant market position. As a result, the EC decided to impose a fine on the company. BEH, Bulgargaz and Bulgartransgaz are jointly and severally liable for the payment of the fine, the level of which was determined on the basis of the EC's 2006 Guidelines on Fines and by taking into account the company's relevant sales in Bulgaria, the serious nature of the infringement and its duration. Monday's decision is another example of how enforcement of EU competition rules complements legislative action to ensure open and competitive gas markets in the EU, in line with the Energy Union objectives. In particular, the EC has the objective of improving competition and the level of security of supply in Southeast European gas markets, including in Bulgaria, the press release reads. According to the EC, the removal of barriers to entry for competitors will allow the Bulgarian wholesale gas market to function more efficiently, with more buyers and sellers, and give Bulgarian consumers better prices and a choice of gas suppliers. This will be further facilitated by the recent opening of the Greece-Bulgaria gas interconnector, for which the EC approved public support on November 8, 2018, and by the Bulgaria-Romania-Hungary-Austria energy cooperation project, which will enable Bulgarian wholesalers to diversify their supply sources. The EC opened a formal investigation into BEH group's behaviour on July 4, 2013, following an inspection carried out at BEH group's premises in September 2011.
Source: Capital (18.12.2018)