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.