Bulgarian natural gas sector development – Regulator’s point of
view
Petya Ivanova
Gas Department
SEWRC, Bulgaria
[email protected] Sofia, 28-29 March 2012 1
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SEWRC’s tasks in conjunction with European legislation
Energy Act and relevant ordinances amendment procedure in order to implement Directive 2009/73/EC; TSOs certifications; TYNDP approval;
Establishment of a Preventive Action Plan and an Emergency Plan in cooperation with MEE in compliance with Regulation (EU) 994/2010 concerning measures to safeguard security of gas supply;
Effective market monitoring in accordance with Regulation (EU) 1227/2011 on wholesale energy market integrity and transparency;
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setting of harmonized principles for tariffs for access to the network, establishment of third-party access services and harmonized principles for capacity-allocation and congestion-management in pursuance of Regulation (EU) 715/2009 requirements;
Entry-exit Tariff system establishing for gas transmission (now for both transmission an distribution is postage stamp tariff system);
Adoption of main commercial conditions for the use of underground gas storage “Chiren” elaborated by SSO as required in Directive 2009/73/EC;
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Transmission and supply of natural gas in Bulgaria – present situation
Bulgartrangaz (BTG) has licenses for gas transmission and gas
storage: both functions of TSO and SSO;
Dedicated transit pipeline system, owned by BTG, transport natural gas
originating from the Russian Federation to Greece, Macedonia and
Turkey; engaged with long term contracts (Transit Agreements);
Supply of natural gas - performed by the public provider Bulgargaz
who has a license for public supply. Bulgargas has long term contracts
with 3 foreign suppliers;
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Natural gas sale prices by the public provider to the end suppliers and
consumers connected to the natural gas transmission network-
regulated by SEWRC;
The price at the entrance at the gas transmission network is calculated
as an average weighted value based on the quantities for the following
quarterly period from imports and from domestic production and their
respective prices;
transmission tariff based on the cost-plus method, allowing BTG to
recover the eligible operating and capital costs (allowed revenue);
consists of a commodity-only charge derived from the allowed revenue
divided by the forecasted transmission volume (1000 cm).
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Tariff system for both transmission an distribution is postage stamp, in
procedure for entry-exit system implementation
Pursuant to Art.17, subparagraph 8 of Ordinance on Natural gas Prices,
sale prices by the public provider to the end suppliers and consumers
connected to the natural gas transmission network could be adjusted
by the Commission based on the extra profit/extra loss due to the
difference between estimated and reported values of the pricing
elements of the previous/ prior period
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0,00 BGN
100,00 BGN
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700,00 BGN
20
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Gas price at the entrance of the gas transmission system and gas price of
public supplier, 2002 - 2011, BGN/1000 cm, without VAT
Price at the entrance of thegas transmission network
Trasnmission tariff
Price of transmission andsupply
Distribution of natural gas
There are 33 licensed gas distribution companies on the territory of Bulgaria which fulfill both functions of gas distribution and supply of last resort
Distribution companies provide natural gas on the territory of 5 regions (Mizia, Dobrudja, Trakia, Dunav and Zapad) and 63 municipalities out of these regions
Since 01.07.2007, all consumers are eligible under the change of the Regulations for providing access to the gas transmission and/or gas distribution networks, approved by SEWRC
“Cap” regulation is used with the goal to create the incentive for the undertakings to reduce their expenses
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distribution network investments
m BGN non-residential residential non-residential residential
Total 248577 39938000 5234 57041 393124 61394
customers consumption
DSOs, 2010
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Average connection charges for gas Non-residential customers: 1245 EUR/customer Residential customers: 253 EUR/customer Average distribution gas charges Non-residential customers: 63.93 EUR/1000 m3 Residential customers: 117.93 EUR/1000 m3 Average end-user gas prices (second quarter of 2011) Wholesale: 284.9 EUR/1000 m3 Non-residential customers: 278.49 EUR/1000 m3 Residential customers: 377.28 EUR/1000 m3
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Potential new sources and routes
Nabucco project - Decision № Р-074/11.02.2008 to exempts the Bulgarian section of the Nabucco pipeline project from the third party regulated access rules, amended by Decision № И1-Р-074/12.01.2009 and by Decision № И2-Р-074/14.05.2009
Interconection Bulgaria – Greece (IBG): 2014
Interconection Bulgaria – Romania (IBR): 2013
Interconection Bulgaria – Serbia (IBS): 2015
Interconection Bulgaria – Turkey (IBT): 2014
Black Sea CNG
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Sofia, 28-29 March 2012 12
Giurgiu
Ruse NIS
2 1
3
4
Komotini
GS GALATA UGS CHIREN
SEE LNG
5
Stara Zagora
IBR
IGB
ITB
Dimitrovgrad
Lozenets
Markoclar Dupnitsa
IBS
8th EU
CORRIDOR
BLACK SEA CNG
INTERCONNECTION GREECE-BULGARIA (IGB)
INTERCONNECTION TURKEY-BULGARIA (ITB)
INTERCONNECTION BULGARIA-ROMANIA (IBR)
INTERCONNECTION BULGARIA-SERBIA (IBS)
BLACK SEA CNG
THANK YOU FOR YOUR ATTENTION!
Petya Ivanova
SEWRC, Bulgaria
www.dker.bg
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