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Bulgaria's energy regulator approves 13% cut in June natgas price

Bulgaria's energy regulator approves 13% cut in June natgas price Author: Ilya. Licence: Creative Commons.

SOFIA (Bulgaria), June 10 (SeeNews) - Bulgaria's utilities regulator said on Friday that it approved a 13% monthly decrease in the wholesale price of natural gas for June, to 141.36 levs ($76.55/72.27 euro) per MWh, bringing the price below that of Russia's Gazprom which halted deliveries to the country in late April.

In its decision, the regulator examined the amounts and supplier prices presented in last month's price request by public supplier Bulgargaz and deriving from two sources - a contract for supply with Azerbaijan and an agreement for the delivery of liquefied natural gas (LNG), the Energy and Water Regulatory Commission (EWRC) said in a statement.

Earlier this week, state television BNT reported that the first of two tankers delivering LNG from the US to Bulgaria has arrived.

At the start of June, Bulgargaz asked the EWRC to approve a price of 141.28 levs per MWh for natural gas in the current month.

The regulator had previously authorised a jump in the price of natural gas for May to 162.17 levs per MWh.

"With the price achieved in June, Bulgargaz proves that by attracting new suppliers Bulgaria can achieve lower prices than those of Gazprom, which is good for both household consumers and the competitiveness of the Bulgarian economy. Our common goal is this to be the direction in the coming months and years so that our country can overcome its historical energy dependence on a single supplier - Russia," EWRC chairman Stanislav Todorov noted.

The energy regulator added that all necessary quantities of natural gas have been guaranteed for household, industrial clients and central heating companies. Looking ahead, the EWRC highlighted the challenge of ensuring long-term supply contracts and recommended future agreements be signed with at least three separate alternative suppliers that use different price-forming methods.

Bulgarian energy regulations require Bulgargaz to set the gas price monthly. EWRC has the final say on the 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.

(1 euro = 1.95583 levs)

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