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.

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