Bulgarian natural gas sector development Regulator s point of view Petya Ivanova Gas Department SEWRC, Bulgaria pivanova@dker.bg Sofia, 28-29 March 2012 1
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; Sofia, 28-29 March 2012 2
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; Sofia, 28-29 March 2012 3
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; Sofia, 28-29 March 2012 4
Natural gas sale prices by the public provider to the end suppliers and consumers connected to the natural gas transmission networkregulated 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). Sofia, 28-29 March 2012 5
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 Sofia, 28-29 March 2012 6
2002 Q2 2002 Q3 2002 Q4 2003 Q1 2003 Q2 2003 Q3 2003 Q4 2004 Q1 2004 Q2 2004 Q3 2004 Q4 2005 Q1 2005 Q2 2005 Q3 2005 Q4 2006 Q1 2006 Q2 2006 Q3 2006 Q4 2007 Q1 2007 Q2 2007 Q3 2007 Q4 2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 STATE ENERGY AND WATER REGULATORY COMMISSION 700,00 BGN 600,00 BGN 500,00 BGN 400,00 BGN 300,00 BGN 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 the gas transmission network Trasnmission tariff Price of transmission and supply 200,00 BGN 100,00 BGN 0,00 BGN Sofia, 28-29 March 2012 7
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 DSOs, 2010 distribution network investments customers consumption m BGN non-residential residential non-residential residential Total 248577 39938000 5234 57041 393124 61394 Sofia, 28-29 March 2012 8
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 Sofia, 28-29 March 2012 9
Sofia, 28-29 March 2012 10
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 Sofia, 28-29 March 2012 11
INTERCONNECTION GREECE-BULGARIA (IGB) INTERCONNECTION TURKEY-BULGARIA (ITB) INTERCONNECTION BULGARIA-ROMANIA (IBR) INTERCONNECTION BULGARIA-SERBIA (IBS) BLACK SEA CNG Giurgiu 3 8 th EU CORRIDOR NIS IBS 4 Dupnitsa UGS CHIREN 1 Ruse Dimitrovgrad Komotini IBR Stara Zagora IGB 2 Lozenets ITB Markoclar GS GALATA BLACK SEA CNG 5 SEE LNG Sofia, 28-29 March 2012 12
THANK YOU FOR YOUR ATTENTION! Petya Ivanova SEWRC, Bulgaria www.dker.bg Sofia, 28-29 March 2012 13