Bulgargaz as an extension and embodiment of Gazprom’s monopoly
The imminent natural gas price increase was preventable and predictable. Applying any of the traditional price risk mitigation steps by Bulgargaz’s management would have produced a substantially lower, if any, price increase.
The long-term and lasting solutions require radical reform in the gas sector, abolishing dependencies and avoiding the traps Russian energy grands applied to control the fuel sector – where Lukoil is operating a web of complex carrot and stick systems within a loose ‘cartel’ that stifles competition.
Customers are not hostages or liege men of a preordained Russian energy fiefdom. If Bulgargaz is unfit to engage in a level playing field and open competition, then the CEWR and CPC and the Bulgarian government should step in and overhaul Bulgargaz.
The situation is weird in the extreme - Gazprom seeking ways to exit its monopoly and Bulgargaz dragging its feet.