BALKAN GAS HUB INFORMS POTENTIAL PARTICIPANTS IN THE GAS RELEASE PROGRAMME ON DETAILS OF FORTHCOMING TENDERS, INCLUDING EXPLANATIONS OF THE APPLICABLE SUPPLY PRICE UNDER THE PROGRAMME
Dear partners,
In order to clarify the practical
application of the Agreement for implementation of the natural gas release
programme and more particularly the formation and update of the natural gas
supply price under the GRP, we would like to provide a comparative information
on the components included in the delivery price under the GRP compared to the
regulated price of the public supplier.
|
Comparative table on the components of the regulated price of
the public supply and the price at which natural gas will be sold under the
GRP in line with the conditions of the Agreement for implementation of the
natural gas release programme. |
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Component |
Regulated price of the natural gas for the public supply
activity |
Price at which natural gas will be sold under the GRP |
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1. Weighted average price of the natural gas at entry |
The weighted average price of the natural gas at entry of the gas transmission system (WACG) from all sources -
approved by EWRC decision for each quarter
|
The weighted average price of the natural gas at entry of the gas transmission system (WACG) from all sources -
approved by EWRC decision for each quarter |
|
2. Community obligations |
Community obligations - component compensating the costs arising out of obligations to
the community - approved by EWRC decision for each quarter |
Community obligations - component compensating the costs arising out of obligations to
the community - approved by EWRC decision for each quarter |
|
3. Costs |
3.1. Public supply component -
includes the rate of return of the public supplier’s capital |
3.1. NOT INCLUDED |
|
3.2. Economically justified
costs - conditionally fixed and variable costs, allocated proportionally to
the quantities under the public supply activity in line with the EWRC
decision |
3.2. Economically justified
costs - conditionally fixed and variable costs, allocated proportionally to
the quantities under GRP in line with the EWRC decision |
|
|
4. Additional costs |
Costs additional for the public supplier, arising as a
result of a supply through the respective year of the natural gas quantities,
nominated by end suppliers following August of the year preceding the supply
year, shall be paid by the entities who have arisen those costs (articles 18
and 19 of Ordinance No.2 on natural gas price regulation) |
NOT INCLUDED |
|
Real price of the gas as a
commodity |
The amount of the values under item 1 to item 4 |
The amount of the values under item 1 to item 4 |
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5. Costs for capacity through the gas transmission
system of Bulgaria |
Costs for capacity at entry points of the system based
on the capacity booked by the public supplier on behalf of customers |
Costs for capacity at entry points of the system where
the capacity is calculated as a product with the lowest price |
|
Gas price to the Virtual trading point (VTP) |
The amount of the values under (item 1 to item 4) + item 5 |
The amount of the values under (item 1 to item 4) + item 5 +
auction premium (if any) |
In line with item 12 and 13 of the
approved Agreement the start price of the auctions announced by Bulgargaz EAD
is only indicative, whilst the real price under which natural gas sales will be
carried out is the updated price for each quarter compared to the change in its
components and in line with the respective EWRC decisions on approving the
natural gas price of Bulgargaz EAD adding an auction premium (if any). Thus the
forthcoming potential decrease of any regulated price components will reflect
the updated supply price under GRP.
Bulgargaz EAD is
obliged to announce on the first day of each quarter the updated sale price
under the GRP by components in order to compare the natural gas value under the
GRP compared to the regulated price, as the regulated price excludes costs for
capacity which is separately transferred from Bulgargaz EAD to customers.
The analysis
presented by Gas Hub Balkan EAD aims to bring additional transparency and
expresses only the position of the company with respect to the parameters that
form the price under the GRP Agreement.
We would like to
remind that the second auction under the GRP will be held on 16 December 2019
under the terms and conditions of item 8.2 of the GRP Agreement approved by
EWRC, so as to ensure the security of supply in the country. All participants
who have already registered and signed Agreement for participation, including
Annex 2 thereto, are entitled to participate in the second auction without the
need to submit additional documents.
New participants could
register to participate in the second auction until 13 December 2019,
inclusive.
Balkan Gas Hub EAD Team