Bulgargaz: Toplofikacia Sofia should pay or look for another supplier Toplofikacia Sofia has not paid its natural gas bills since July, and only the interest for the delay raises its debt by BGN 17 thousand a day. Tensions between the municipal company and the state-owned Bulgargaz have intensified in recent days with hints of gas shutdown and suggestions for Toplofikacia Sofia seeking another supplier. This is evident from an official letter from the gas supplier to the Minister of Energy Temenuzhka Petkova. This happens in the midst of the winter season, in which the families of the company's 420,000 subscribers, or a total of 1 million people, expect heat and hot water from it. Until January 7, 2020, the overdue matured liabilities of Toplofikacia Sofia SPJSC amount to a total of BGN 200.5 million, of which BGN 3.14 million are a penalty for the delayed payment. "The accumulated debt is the result of non-payment of invoices for natural gas delivered, the oldest of which is from July 2019," the supplier specifies. On December 13, 2019, Bulgargaz signaled that "since the beginning of December Toplofikacia Sofia has not made payments and has not provided a timetable for repayment of overdue obligations." As of this date they amount to BGN 155.79 million.
Source: Dnevnik (10.01.2020)

Toplofikacia Sofia can now buy gas through the stock exchange Toplofikacia Sofia is already an officially registered participant on the gas exchange. The goal is to get lower gas prices by buying from different suppliers. This was announced by Sofia Mayor Yordanka Fandakova. So far, Toplofikacia Sofia has only purchased gas from the state-owned supplier Bulgargaz. Toplofikacia regularly delays its payments under this contract and accumulates obligations. "For over a year we worked for this (exchange registration) together with Minister Temenuzhka Petkova and the Parliament, with whom we made legislative changes, and yesterday we received permission from the Sofia Municipal Council to register in the trading platform of "Gas Hub Balkan," Fandakova said. "We are convinced that the active participation of the biggest Balkan heating company on the gas exchange will help both improve the service it offers and establish a liquid and transparent natural gas market in Bulgaria,” according to Toplofikacia Sofia.
Source: mediapool.bg (10.02.2020)

Bulgargaz assumes the price of natural gas may fall as early as March Bulgargaz "proposes that the price of natural gas will fall by 2.52% in the second quarter, but it does not rule out a significant decrease before that. By law, the state gas supplier is obliged to announce its intention for a price in the next regulatory period one month before submitting it to The Energy and Water Regulatory Commission, which will in turn announce what the price will be just before the start of the second quarter. Bulgargaz suggests that the reduction could be even greater because it is negotiating with Russia's Gazprom Export to reduce the delivery price to the country. Negotiations are expected to be completed by the end of the month. Immediately after the signing of the agreement, Bulgargaz SPJSC will request from EWRC a reduction in the price of natural gas from the beginning of March 2020, as well as a revision of the pricing method. However, the proposal is currently at BGN 42.93 / MWh (excluding prices for access, transmission, excise duty and VAT), which is BGN 1.11 / MWh or 2.52% lower than the current price, the company announced.
Source: Dnevnik (11.02.2020)

Gazprom may lower the price of gas for Bulgaria by 50% Gazprom may lower the price of natural gas for Bulgaria by more than 50%, according to Russia's Kommersant newspaper. Final negotiations are currently underway between Sofia and the Russian company to change tariffs after the expiration of the current contract. A few days ago, Bulgargaz also announced a "significant" fall in price, but did not indicate any figures. The Energy Ministry has so far declined to comment. The change for Bulgaria is likely to come by applying a new calculation formula - the price of gas will be "offset" by oil quotations and will be attached to market prices formed on gas exchanges. Gazprom's resilience is due to pressure from the European Commission. Following an antitrust investigation, the EC was preparing to impose serious fines on the Russian giant, but an agreement was reached that if Gazprom revised its price formula in favor of Bulgaria, there would be no sanctions. Bulgaria is not the most significant customer for Gazprom, but the Russian monopolist is unlikely to be ready to lose it, so Sofia may receive the requested discount in gas prices, according to experts.
Source: Sega (13.02.2020)

Russia's gas price drops by 40% for Bulgaria After heavy negotiations between Bulgargaz and Russia's Gazprom, our country has finally managed to achieve a serious reduction in the price of Russian fuel. The Russian supplier has sent a signature contract, according to which the blue fuel for Bulgaria will be 40.3% cheaper. Thus, in April Bulgargaz will propose to the Energy and Water Regulatory Commission the price of Russian gas to be BGN 26.29 per megawatt hour (excluding taxes and VAT). Currently it is BGN 44 and the decrease is by 40.3%. It will take effect retroactively from August 5, 2019, when the reduction was requested, the head of the Bulgarian company explained. This means a refund of about BGN 150 million (excluding VAT) to Bulgargaz customers.
Source: economic.bg (04.03.2020)

The director of Bulgargas: Bulgaria will renegotiate the price of Azeri gas Bulgaria will start renegotiating the price of Azeri gas, which imports should start from October this year. This was pointed out by Nikolay Pavlov, the executive director of Bulgargaz. "The agreed price for gas supplies from Azerbaijan is already higher now, but there is already reason to renegotiate it," Pavlov said. Currently, the gas supply contract from Azerbaijan is tied to the price of oil derivatives and the fuel will be more expensive than even Russian imports, and Bulgaria will want to tie prices to those of gas exchanges.” Prime Minister Boyko Borisov announced at a briefing in the Council of Ministers that the price of natural gas for Bulgaria is falling by 40%. This was agreed after 7 months of negotiations between Bulgargaz and Gazprom. The prime minister described this as a symbolic gift and stressed that diversification and competition really show how blue fuel prices fall.
Source: investor.bg (05.03.2020)

Gazprom will return BGN 150 million to Bulgaria by the end of March Gazprom will reimburse BGN 150 million, with VAT, in the accounts of Bulgargaz by the end of this month. This was stated by the Executive Director of the gas operator Nikolay Pavlov, who was heard in the Energy Commission. The amount is equivalent to a 40% reduction in the price of gas agreed between Gazprom and Bulgargaz, which will be retroactive - from August 2019. This is the date the negotiations began between the two parties. Responsible institutions are now looking for ways to return these funds to end users. "How will all this positive retroactive effect from August 5, 2019 be accounted for, is within the competence of EWRC," Pavlov said. Bulgargas did its best to negotiate the new price. It is our competency and responsibility to get the money back, from there on it is not,” he added. In his words, the deal was "pretty good". "At the beginning of the talks, Gazprom was shocked by what we wanted to get as a price," he explained, adding that due to strong arguments, they had reached a balancing price formula to compete on the market.
Source: economic.bg (06.03.2020)

Cheaper gas by 40.49% since April and eight tariffs retroactively declared by Bulgargaz On April 1, natural gas prices for the domestic market will be by 40.49% lower than the previous ones, state-owned public utility Bulgargaz said. This is more than the previously predicted fall of 40.3% due to the renegotiated formula for calculating the price of Russian natural gas, which already includes the price component of European gas exchanges. The gas company has submitted eight more applications for retroactive pricing as of August 5, 2019, as was agreed with Gazprom, which would result in a return of BGN 150 million excluding VAT to Bulgargas by the end of March. According to the application submitted by Bulgargaz, the price of natural gas from April should be 26.21 BGN / MWh (excluding prices for access, transmission, excise duty and VAT) for final suppliers and for companies with a license for production and transmission of heat. This tariff is BGN 17.83 lower than the previous one. Bulgargaz added that the price of gas will be determined every month, as this is foreseen in the new formula. Currently, the tariff is set every three months.
Source: mediapool.bg (12.03.2020)

EWRC proposes to reduce steam heating by up to 25% since April The Energy and Water Regulatory Commission (EWRC) proposes to reduce central heating and hot water prices by between 8% and 25% from 1 April. The proposed reduction is dictated by the requested reduction of 40.49% of the price of natural gas in Bulgaria, which will decrease from BGN 44.04 to BGN 26.21 per megawatt hour. This decrease is due to changes in the terms of the contract with the Russian company Gazprom Export, which on March 3 this year agreed to reduce the price of blue fuel for Bulgaria by 40.3%. The change came into effect retroactively on August 5, 2019. EWRC's estimates of the proposed price reductions are provisional and will be discussed in open court on March 26. CEWR's proposal is to reduce the price of thermal energy in Sofia by 25.14%. In Plovdiv the price reduction is offered by 14.8%, in Burgas by 16.4%, in Varna by 7.8%, in Vratsa by 21.3%, in Veliko Turnovo - by 16.6%, in Razgrad - by 16%. The energy law has not yet been amended and this does not allow EWRC to set retroactive prices, the regulator said.
Source: economic.bg (23.03.2020)

Offers for Belene NPP postponed, but Turkish Stream and Greek connection are still in time Due to the emergency situation with the spread of the coronavirus, the deadlines for submission of tenders by a strategic investor for the completion of Belene NPP will need to be extended. The construction of the continuation of the Russian gas pipeline "Turkish Stream" on Bulgarian territory and the interconnection gas connection with Greece are currently moving within the timeframe stipulated in the contracts, Energy Minister Temenuzhka Petkova said. "Both Balkan Stream and the Greece-Bulgaria interconnector are moving within the terms set in the treaties," Petkova said. She suggested that the crisis related to the pandemic from the coronavirus was likely require an extension of the deadline for submitting bids for the Belene project, and indicated that all five companies that confirmed their willingness to submit a binding bid remain interested in the project. Each country, in accordance with its economic parameters and capabilities, may take such measures as it deems most appropriate. We have made our assessment and the measures, which we consider to be relevant to the situation, have already been included in the State of Emergency Act, Petkova further commented. According to her, the text on the price ceiling, adopted on a proposal by the BSP, makes it impossible for Bulgargaz to return to customers the difference in gas price obtained during the renegotiation with Gazprom. Next week, concrete action is expected on the gas price reduction agreed with Gazprom retrospectively, the energy minister said. The country's energy security is guaranteed despite the emergency due to the coronavirus, she assured. In her words, it is important for the energy sector to be financially sound so that there is no risk to the technical possibility of it functioning normally.
Source: mediapool.bg (24.03.2020)

Bulgargas proposes to EWRC to approve 6.67 percent lower natural gas price in May compared to April Bulgargaz has proposed to EWRC to approve the price of natural gas for May in the amount of BGN 23.52 / MWh (excluding prices for access, transmission, excise duty and VAT) for final suppliers of natural gas and for a person to whom a license for generation and transmission of heat has been issued. This was announced by the public provider. Compared to the price approved for April (excluding prices for access, transmission, excise duty and VAT), the price of natural gas offered by Bulgargaz for May is lower by 6.67% or by BGN 1.68 / MWh, the message states.
Source: BTA (13.04.2020)

Bulgargas will repay gas for business and citizens The state operator Bulgargas will reimburse overpaid natural gas and heating bills to both citizens and businesses after the Energy Commission approved second-reading changes to the law as a result of the new blue fuel price. Gazprom Export returned about BGN 150 million to Bulgargaz because of a contractual change in the price formula with effect from August 5 last year. The price of Russian gas for Bulgaria in the new contract is almost 40% lower. The money recovered from the Russian company is in the accounts of Bulgargas. The state operator has already submitted to the EWRC a proposal for retroactive price changes from April last year to March 31 this year. Twenty days after the decision of EWRC, Bulgargas calculates the reimbursement amounts at the new prices and then concludes agreements with the district heating companies and the gas distribution companies. Fourteen days after the agreement is signed, the gas public provider shall recover the money.
Source: Banker (14.04.2020)

District heating companies demanded a dramatic rise of heating The dramatic increase in heat energy from July 1 is offered by district heating in Bulgaria. They sent an applications for new prices to the Energy and Water Regulatory Commission (EWRC). For many cities, the required appreciation is two-digit. The proposals for the increase of the prices of heating as a percentage of the price as of April 1, 2020 start from 9.5% in Varna, go through 20% for Pleven, Sofia and EVN District Heating (Plovdiv) and reach 45% for Burgas, 52% for Razgrad and 62% for Vratsa. Most striking is the requested price increase of as much as 140.5% for Veliko Turnovo. Former Ombudsman Maya Manolova first announced the new increase demands. The statements show that they were sent to the regulator at the end of March, but were published on the EWRC website only two days ago. The demands come amid the new contract with Gazprom, which led to a sharp fall in natural gas prices and a link between its price and the quotations of "blue gold" on international exchanges. Under the agreement, gas prices were recalculated retroactively - from August onwards, and the Russian supplier reimbursed overpaid BGN 150 million to Bulgargas, which in turn should return the excess to its customers, incl. district heating companies. Despite the fall in the price of natural gas on the international markets, domestic district heating companies offer in their calculations an increase in various costs such as depreciation, wages, related insurance and social payments.
Source: Sega (16.04.2020)

EWRC will discuss Bulgargaz's proposal for cheaper gas Energy and Water Regulatory Commission (EWRC) will be considered the proposal by Bulgargaz to reduce the price of natural gas by nearly 7 percent in an open meeting. According to a recent agreement between Bulgargaz and its Russian supplier Gazprom Export, the price of blue fuel is calculated every month and is formed using a formula including the prices of oil and gas for several European hubs. Thus, despite the fact that since the beginning of this month, the blue fuel has fallen by 43 per cent, its prices are expected to fall in May and teh cost per MWh would cost about 23-24 BGN without fees and taxes. With this reduction, the regulator will have to set new lower prices for both heating and hot water next month, as gas forms the greater part of the final cost of heat.
Source: National radio (23.04.2020)

EWRC recalculated 35% lower gas price for August and September 2019 The Energy and Water Regulatory Commission (EWRC) recalculated the price of Russian natural gas for Bulgarian consumers retrospectively - for August and September 2019. For the two months, according to the new contract between Bulgargaz and Gazprom, which is valid from August 5. In 2019, the prices of blue fuel are 35% lower than those at which the public supplier sold to final suppliers during this period. The approved prices for previous periods have been adopted in order to calculate the amounts that the public natural gas supplier and the final suppliers should reimburse to the customers for natural gas supply, it is stated in the decisions of the watchdog. On this basis, more than BGN 150 million will be returned to household and industrial consumers, which Bulgargaz received from Gazprom Export. The prices set by the regulator are in line with the amendments to the Energy Act, which provide for gas prices to change monthly for the seven months during which the new contract with the Russian company is valid - from August 5, 2019 to March 2020. "After consideration of the public supplier's application and taking into account all pricing factors, the Commission approved the price of natural gas for the period August 5, 2019 - August 31, 2019 in the amount of BGN 29.28 / MWh (excluding prices for access, transmission, excise and VAT). Compared to the price approved by the EWRC with Decision of 28.06.2019 for the month of August 2019, the decrease is by BGN 15.62 / MWh or by 34.79%. A change in the price of natural gas has been adopted for the next month - September.
Source: economic.bg (12.05.2020)

The Italian company Bonati set its base for the Balkan Stream gas pipeline in Gorna Oryahovitsa. The offices and equipment of the company that makes Balkan Stream are already located in a former army base. The company is currently preparing for the start of active construction, which is expected to begin in ten days. The Italians have to build the route from Letnitsa to Popovo, and according to the schedule they have to finish work by the end of October. All anti-epidemic measures have been taken at the base and so far there is no case of an infected worker or specialist. The Italian company has launched a campaign for mass recruitment of workers from Bulgaria, which Borba has already announced. Hundreds of general workers and specialists are wanted, most of whom are housed in the old capital and Arbanassi. All labor offices in the region, labor intermediaries and even the mayoralties in the district are involved in recruiting staff for the needs of Balkan Stream. According to initial data, over 700 people are wanted, and their salaries start at a minimum of BGN 1100, but depending on the activity there are many bonuses and social benefits. The Italian company Bonati is one of the largest contractors for pipeline projects around the world.
Source: Borba - Veliko Tarnovo (15.05.2020)

EWRC lowered natural gas prices for January-March The Energy and Water Regulatory Commission has retroactively lowered natural gas prices for the first three months of the year. The reductions are: by 14.12% for January, 23.23% for February and by 31.65% for March, EWRC announced. The changes are due to the agreements reached in March between Gazprom Export and Bulgargaz to form the price of natural gas in a new way and to apply the new formula retrospectively - from August 5, 2019. It was under this agreement that the first big reduction came - from April 1, the price of natural gas fell by almost 43%. Then it was necessary to make recalculations for the period from August 5, 2019 to March 31 this year. The current reduction - for the first three months of the year, is the third in a row with a retroactive effect. Earlier, the commission announced a reduction in prices in previous months. These reductions should lead to a correction in the prices of district heating, and hence to a reduction in the bills of their subscribers for heating and hot water for the period from August 5 to March 31. However, these additional recalculations are yet to be made, and when the calculations are ready and approved by the EWRC, the subscribers will not be refunded, and the overpaid amounts will be deducted from subsequent invoices.
Source: Sega (21.05.2020)

The reduction in the price of gas may continue with a new 1.7% from June 1 The downward trend in the price of natural gas will continue next month, with the new decline expected to be around 1.7%. The Energy and Water Regulatory Commission (EWRC) will approve the specific price for June on the first day of the month, EWRC Chairman Ivan Ivanov announced. Then Bulgargaz will submit updated data on stock exchange quotations and the average dollar exchange rate during the month, which will also be taken into account when determining the price. With such a decrease, no change in the tariffs for heating and hot water is envisaged, as according to the law they could change if at least 5% adjustment in the value of natural gas has been made. Upon approval of Bulgargaz's current offer, the price of gas will become 21.97 BGN / mWh (excluding prices for access, transmission, excise and VAT). For comparison - the current prices of the German gas hub TTF are 4.2 euros / mWh, and in the period from 24 to 26 May they fåll even below 3 euros per megawatt hour. However, it should be borne in mind that the Russian gas that Bulgaria receives from Gazprom has transmission costs to the country, while the tariffs from the hub are only for the raw material. It is expected that in June the end customers will be reimbursed after the retroactive price of natural gas for the eight months from August 2019 to March 2020 has been recalculated.
Source: Capital (28.05.2020)

Bulgargaz offers cheaper blue fuel from July and August Bulgargaz proposes a reduction in the price of natural gas in the next two months. From July 1, the state gas supplier offers to reduce the price of natural gas to BGN 19.49 per megawatt-hour (excluding prices for access, transmission, excise and VAT), which is a decrease compared to the current price by BGN 0.84 / mWh, or 4.13%. The company's website shows that it offers a new reduction from the beginning of August by 1.03% to BGN 19.29, specifying that due to the movement of fuel prices on the stock exchanges a final proposal will be submitted to the regulator on July 10. On Wednesday, the Energy and Water Regulatory Commission will consider Bulgargaz's price offer for July. In both cases, however, prices will not affect those of heating, as according to the new rules of the commission, the heat supply is adjusted when the change in the price of natural gas is above 15% and not above 5%, as was the case until recently.
Source: Sega (23.06.2020)

Bulgargaz proposes that the price of natural gas fall by another 6.05% Bulgargaz proposes that the price of natural gas from July 1 be BGN 19.10 / MWh, excluding prices for access, transmission, excise and VAT. This price is 6.05% or 1.23 BGN / MWh lower than the price approved for June. Initially, Bulgargaz wanted the price to be BGN 19.49 / MWh. This proposal was submitted to the EWRC on June 10. The regulator was asked by the gas company to comply with the value of the spot component as of June 30 when forming the value of natural gas for this month.
Source: 24 chasa (02.07.2020)

Gazprom tries to leave Bulgarian Overgas again Gazprom's board of directors has agreed on a possible deal for the company to leave its stake in Overgas, Russian news agencies reported. The proposed project for approval is the share of 50% to be sold to the Bulgarian partner Overgas Inc. JSC for EUR 15.5 million. It is a possible sale of Gazprom Export's stake and the significantly smaller share of Gazprom in the Bulgarian company, established in 1995. According to sources, the shareholders' agreement provides for the offer to buy out Russia's stake to be made first to the Bulgarian partner. This is still far from a real deal, and Interfax reports that Gazprom hopes to sell its stake in Bulgaria to the company. "The Russian partner has been trying to do this for 5 years, but the deal has been delayed due to litigation between the former partners," the agency added. The Bulgarian shareholder in Overgas is still in dispute with Gazprom in the International Court of Arbitration. For years, Bulgarian governments have tried to supply natural gas directly between Gazprom and the state-owned Bulgargaz. The change was achieved in 2012 with the signing of an agreement and in 2013 began deliveries. Since 2016, Bulgargaz has become a monopolist Russian gas supply.
Source: Dnevnik (14.08.2020)

EWRC offers gas price increase for September by over 15% The Energy and Water Regulatory Commission (EWRC) proposes an increase in the price of gas for September by more than 15%. This became clear after an open meeting of the members of the regulator, at which a report on the submitted application of Bulgargaz was discussed, the EWRC announced. After an analysis prepared on the basis of the data submitted by Bulgargaz SPJSC and after calculations made according to the price model, the report on the submitted application proposes that the price of natural gas from September 1, 2020 be 21.51 BGN/MWh (excluding prices for access, transmission, excise and VAT). Compared to the current price for the month of August 2020 in the amount of 18.67 BGN/MWh, the increase is by 2.84 BGN/MWh, or by 15.21%, the statement reads. Bulgargaz wants the regulator to approve a price for next month at which the public supplier will sell natural gas to final suppliers and to persons who have been issued a license for production and transmission of heat.
Source: investor.bg (28.08.2020)

Natural gas will rise by an additional 10% in October The Energy and Water Regulatory Commission discussed the proposal of Bulgargaz SPJSC to increase the price of gas from October 2020. From the 1st the state company offers a price of BGN 24.84 / MWh (excluding prices for access, transmission, excise and VAT) for final suppliers of natural gas and for a person who has been issued a license for production and transmission of heat. The new price increase is currently 10.6% compared to the price for September, because this is not the final offer of Bulgargaz. The final rate will become clear on October 1 to take into account recent price movements in international markets.
Source: Trud (28.09.2020)

Bulgargaz raises the price by 10% from today The Energy and Water Regulatory Commission approved the next adjustment of the price of natural gas requested by Bulgargaz. From October 1, the state monopolist will sell natural gas at BGN 24.72 / MWh (excluding prices for access, transmission, excise and VAT). This is a 10% increase compared to September. The price was significantly increased last month - by 15%. The EWRC explains that the upward trend is inevitable and is dictated by international gas markets. "The updated natural gas price proposed by Bulgargaz reflects the information received on the market indices of European gas hubs as of September 30, the average monthly euro / dollar exchange rate and the average prices of alternative fuels to natural gas - fuel oil with a sulfur content of 1% and gas oil with 0.1% / sulfur as of September 30 ", the energy regulator points out.
Source: Sega (02.10.2020)

Bulgargaz announced the estimated price of natural gas for December Bulgargaz SPJSC notifies its customers that the estimated price of natural gas for December 2020 is BGN 27.64 / MWh (excluding prices for access, transmission, excise and VAT), formed in accordance with Art. 17 of Ordinance ¹ 2 for regulation of natural gas prices of 19.03.2013. The company clarifies that in accordance with the requirements of Article 36a of the Energy Act, Bulgargaz EAD, a subsidiary of Bulgarian Energy Holding, within one month before submitting to the EWRC the application for change of the current prices, shall publish it in the mass media.
Source: Trud (12.10.2020)

EWRC approved 14% more expensive natural gas for November The Energy and Water Regulatory Commission (EWRC) expectedly approved the higher price of natural gas for November, proposed by Bulgargaz. The regulator adopted a price of BGN 28.21 / MWh (excluding prices for access, transmission, excise and VAT) for November from BGN 24.72 / MWh for October. The approved price is the price at which the public supplier will sell natural gas to final suppliers and to persons who have been issued a license for production and transmission of heat. The final price decision of the Commission was adopted in accordance with the changed terms of the contract between Bulgargaz SPJSC and OOO Gazprom Export. The EWRC has also taken into account the received reporting information on the market indices of European gas hubs for October 2020 and on the average monthly exchange rate for conversion of the euro into US dollars by the European Central Bank for the same period. Despite the increase in the price of natural gas, the prices of heat and electricity remain unchanged, the regulator is adamant. The approved price of natural gas of BGN 28.21 / MWh includes the component price of natural gas at the entrance of the gas transmission networks, the component for the activity ‘public supply’ and the component for compensation of expenses, covering the expenses of Bulgargaz for storage of quantities in the underground gas storage Chiren in fulfillment of obligations under the Emergency Action Plan.
Source: economy.bg (02.11.2020)

Bulgargaz sees grounds for a lower gas price in the coming months Bulgargaz sent a request to the Energy and Water Regulatory Commission (EWRC) for the price of natural gas in December. The company's analyzes show that there is reason to request a price reduction of just under 3% to BGN 27.54 per megawatt-hour, excluding prices for access, transmission, excise and VAT. On November 1, EWRC approved a larger than originally announced increase in the price of natural gas to BGN 28.21 per megawatt-hour. Then the regulator reported the rise in price of raw materials on international markets. The market element is part of the pricing methodology following the agreement with Gazprom, which the government announced in the spring. Bulgargaz's final proposal to approve the price of natural gas will be submitted to the EWRC on December 1. Before that, the experts in the regulator will assess whether the company's demand meet the requirements of the regulations. Bulgargaz is optimistic about the state of the markets in the coming months. By law, the company must also send to the media its expectations for the price of gas a month before its official application to the energy regulator. In their application for January 2021, Bulgargaz intends to ask for a price of BGN 25.07 per megawatt-hour.
Source: investor.bg (11.11.2020)

Bulgargaz sold 22% less natural gas in the first nine months The reason for the state-owned company Bulgargaz to report a collapse of its revenues by over 57% for the first nine months of 2020 is the warm winter, the restrictions due to the coronavirus and the drastic drop in the prices of natural gas. While for the same period of the previous year revenues exceeded a little over a billion, it is now a little over BGN 451 million. In general, the company's gas sales decreased by 21.68%, which, however, does not reflect the real decline in consumption in the country, as a number of customers can now buy from alternative suppliers through the gas exchange. After the change in the pricing formula in the contract with Gazprom in March, the price of gas fell by an average of about 20% for the first 4 months of the year, and then reflected much more directly on European stock markets, which collapsed due to the corona crisis. Against the background of the reduced sales volumes and the reduced price, Bulgargaz reports a positive financial result of BGN 27.8 million, which is almost 20% less than the profit for the first 9 months of last year. The company's report shows that the largest decline in gas supplies is in gas distribution companies - over 50%. As the largest energy company that uses natural gas is Toplofikacia Sofia, and it managed to replace about 10% of its needs with alternative purchases through the stock exchange, it can be assumed that this is where the decline in question comes from. As for the chemical industry, the more likely cause is the coronavirus and the social and economic restrictions imposed because of it. For the same reason, there is a big drop in gas supplies for the glass industry as well as for the construction materials sector. Bulgargaz supplied 27% less gas to the glass industry. Only in the metallurgy there is almost no change in the sales of gas by Bulgargaz.
Source: Capital (19.11.2020)

Bulgargaz to sue Toplofikacia - Sofia Bulgargaz will file a lawsuit against Toplofikatsiya-Sofia over unpaid natural gas bills. The municipal enterprise can avoid the lawsuit - if it repays the accumulated debts by the end of the month - to BGN 149 million. The state gas supplier Bulgargaz has sent another letter to the district heating company urging it to pay the arrears. Such ultimatums have been issued more than once to the ever-lagging company, which supplies heat to Bulgaria's largest city. A similar plot took place last year. Then Bulgargaz even submitted the documents to the court, but withdrew its claim after the district heating company repaid part of its obligations. It is unclear how events will unfold this time. So far there is no reaction from the heat supplier, as well as from its "principal" - the Sofia Municipality.
Source: Sega (27.11.2020)

There is a risk for Azeri gas due to the dispute between Toplofikacia Sofia and Bulgargaz The drama with the debt of the municipal district heating company Toplofikacia Sofia to the state gas supplier Bulgargaz continues for another year, but this time the stakes for its resolution are much higher. This is the contract for the supply of natural gas from Azerbaijan, which would violate the Russian monopoly in the region and is strongly supported by the United States. The plan is for Bulgaria to start receiving Azeri gas from the beginning of 2021, first through the existing pipeline through Kulata, and at a later stage through the gas connection with Greece. But for that to happen, Bulgargaz needs to provide a bank guarantee for Azeri gas. Such a guarantee was provided in July, and its delay became an informal reason for the resignation of Jacqueline Cohen as director of the Bulgarian Energy Holding. According to Capital, this guarantee must be renewed at the beginning of 2021, but the condition of the banking institutions for this is the repayment of at least part of the debt of Toplofikacia Sofia to Bulgargaz, which, however, can hardly happen, even less at the beginning of the heating season. According to the latest data, the debt is BGN 148.6 million. Toplofikacia Sofia is the largest consumer of natural gas in the country (nearly 30% of total consumption) and, accordingly, the largest customer of the state gas supplier. At the moment, however, it does not have enough funds to pay off its debts and also wants changes in its contractual relationship with the gas supplier. On the other hand, Bulgargaz claims that it cannot bear such a financial burden for a long period of time and will have difficulties not only with securing the guarantee for Azeri gas, but also with payments under the contract with Gazprom. It is currently known that Bulgargaz has warned Toplofikacia Sofia in a letter that if the debt is not repaid, the gas company will have no alternative but to file a lawsuit to collect its receivables in order to secure the supply contracts of gas and guaranteeing the supply in the country. The Ministry of Energy, which is the principal of Bulgargaz, refused to comment. There is also silence from the Sofia Municipality, which owns the district heating. For the time being, the EWRC only says that a change in the contracts or heating prices is not necessary, although the non-fulfillment of licensing obligations, such as the payment of natural gas bills, should be analyzed in more depth by the regulator.
Source: Capital (30.11.2020)

Bulgargaz is slightly lowering the price of natural gas from today Russian natural gas, which Bulgargaz imports and sells to its customers, is slightly cheaper today. The Energy and Water Regulatory Commission held a closed meeting, at which it approved the new price, which comes into force on December 1 - BGN 27.70 / MWh (excluding prices for access, transmission, excise and VAT). For comparison, in November the price was BGN 28.21 / MWh. The change in the price of natural gas will not affect the prices of heat and electricity, emphasize the EWRC, recalling that the decision was adopted in accordance with the changed in March terms of the contract between Bulgargaz and OOO Gazprom Export. The new tariff reflects the reporting information on the market indices of European gas hubs for November 2020 and for the average monthly euro / dollar exchange rate of the European Central Bank for the same period, the energy regulator said in a statement to the media. The approved price of natural gas includes: - the component price of natural gas at the entrance to the gas transmission networks, - the component for the activity “public supply”, - the component for compensation of costs, covering the costs of Bulgargaz for storage of quantities in the underground Chiren gas storage facility in fulfillment of obligations under the Emergency Action Plan.
Source: Sega (02.12.2020)