Bulgargaz, the Bulgarian state-owned gas supplier, has submitted a proposal to raise its regulated wholesale natural gas price by 34%. The filing points to higher supply costs and renewed exposure of domestic consumers to regional gas market volatility. The company’s request is linked to the tariff period it is seeking to apply.
The proposed October 2026 wholesale tariff would be about €59.1/MWh. This would be compared with an approved September level of roughly €44.1/MWh. September’s tariff had already risen by 5.5% from August, indicating that procurement costs were increasing before the latest adjustment.
Diversified procurement plan for pipeline imports, LNG and storage
The increase is presented alongside preparations for a diversified supply portfolio for Bulgaria. The plan combines pipeline imports, liquefied natural gas and withdrawals from domestic storage. For November deliveries, Bulgargaz intends to draw on its long-term Azerbaijani gas agreement while also taking additional volumes arriving via Greece and Turkey.
LNG expected through the Alexandroupoli terminal in northeastern Greece is also included in the supply mix. Bulgargaz said withdrawals from the Chiren underground storage facility remain part of its procurement strategy. The company’s approach ties storage use to meeting delivery requirements during the winter period.
How the regulated price is calculated versus European hub quotations
Bulgargaz indicated that its proposed regulated pricing stays below prevailing European wholesale market quotations. It said the exact comparison depends on the relevant delivery period and the market benchmark used for reference. The proposal also distinguishes between European hub levels and the final regulated procurement price paid by Bulgaria’s public supplier.
The company stated that the proposed price includes the cost of gas at Bulgaria’s transmission system entry points. It also covers a regulated public supply component and expenses related to maintaining emergency gas reserves at Chiren. These elements are presented as part of the difference between hub quotations and regulated procurement costs.
Potential cost impacts for power generation and district heating
A significant rise in wholesale gas prices can affect operating costs for industrial consumers, gas-fired electricity producers and district heating operators. This is described as possible even if broader European market conditions remain relatively stable. The commercial outcome depends on how wholesale costs flow into end-user pricing under regulation.
For energy traders, Bulgargaz’s proposal is also framed as an example of how contractual supply terms, storage obligations and LNG logistics can lead to differences between national regulated tariffs and exchange-traded gas prices. The final commercial impact would depend on regulatory approval and the tariff period applied to the increase. Bulgaria’s immediate task is maintaining sufficient winter supply flexibility without allowing procurement costs to translate into a sustained rise in domestic energy prices.
