Re: Conducting auctions under the Natural Gas Release Programme on 11th May 2020
In accordance with item 13.2.1 of the Agreement for implementation of the Natural Gas Release Programme (the “Agreement”), Bulgargaz EAD offers the quantities unpurchased during the auctions as held on 13th April 2020, as follows:
|
2020 |
MWh |
|
June |
238 412 |
|
July |
238 412 |
|
August |
238 412 |
|
September |
238 412 |
|
October |
238 412 |
|
November |
238 412 |
|
December |
238 412 |
The initial price of the auctions, to be held on 11th May 2020, shall be BGN 23.00 / MWh, as the latter includes, as per the requirements of Art 176а, Paragraph 3, Item 2 and Paragraph 4 of the Energy Act in relation to Item 6.2., Item 6.4. and Item 12 of the Agreement, the following components:
- Supply price of BGN 22.27 / MWh made up of:
- Approved price for May 2020 at the entry of the National Natural Gas Transmission System;
- Relatively–constant costs;
- Variable costs;
- “Public service obligation” component;
- Costs to VTP amounting to BGN 0.5960 /MWh.
- Price escalation of BGN 0.73 / MWh, calculated on the basis of the rate of return, approved by EWRC for May 2020 (Decision No Ц-10 as of 1st May 2020).
The initial price is VAT excluded.
In accordance with Item 13 of the Agreement, the supply price is subject to an update at the beginning of each calendar month, as to the actual price for the respective month shall be added the price escalation of BGN 0.73 /MWh as well as the premium resulted from conducting the respective auction.
Remarks:
- The initial price for May 2020 auction, in accordance with the Agreement is pursuant to the changed price conditions under the Contract for supply of natural gas between Bulgargaz EAD and Gazprom Export LLC, and as a result therefrom the supply price is determined on а monthly basis.
- The components under items 12.1, 12.2. and 12.3 of the Agreement, included in the initial price under item 13.2., represent sensitive commercial information, which circumstance has been taken into account in EWRC’s Decision № Ц-13, dated 1st May 2020 for approval of natural gas price for May 2020.
The Contract shall be concluded in the Bulgarian language. The English version is for informative purposes only, and may be downloaded here.
The draft of the Contract may be downloaded here
Bulgargaz EAD