„Bulgargaz“ is effectively bankrupt. This was revealed by Vladislav Panev in a post on Facebook. He announced that the company’s losses for the first six months of 2024 alone amounted to BGN 258 million. And all this is without taking into account the contract with „Botas“. Furthermore:
„Bulgargaz“ is effectively bankrupt. The loss for the first six months of this year is BGN 258 million, mainly because it buys gas at a high price and sells it cheaply. The company’s equity (assets minus liabilities) is negative – minus BGN 132 million. Its market share in the gas sector has dropped from 76% to 64%. Physical sales volumes are down by 30%. All of this is without taking into account the contract with „Botas“.
The entire state energy sector is in а poor state, and the reasons for this are the regulations, especially those concerning prices. Maximum price limits, beyond which profits are confiscated, result in fewer investments, no incentives to work, deficits, imports, and bankruptcies. When the price is zero, “Maritsa Iztok” incurs massive losses. When the price is raised, the state seizes the profits. In the end, the complex is losing significantly, all thanks to those parties that claim to be saving it.
The maximum prices for the industry mean no incentives for investments in energy efficiency or for changing behavior so that operations happen when it’s cheap. All of this is a cancer for both the energy sector and the Bulgarian economy as a whole. At first glance, it seems like a concern for the people, but upon closer inspection, we are losing ground. This is also evident from the statistics.
We remember where price regulation leads. To shortages and queues. Temporary solutions patch the holes and are met with loud applause. However, the harm from them is long-term and becomes visible after years. Well, it’s starting to show. What I have been talking about and voting for in parliament is already happening. That doesn’t mean I’m happy about it. These are the realities. Populism means losses.“
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