site.btaBulgaria's Competition Watchdog Investigates Possible Market Manipulation in Energy Sector

The Commission on Protection of Competition (CPC) is conducting a preliminary inquiry into allegations of cartel practices in the energy market, the regulator announced Tuesday.

The investigation was prompted by a tipoff from MPs of Continue the Change - Democratic Bulgaria, who have also alerted the acting Prosecutor General. It is based on findings of an investigation by the Anti-Corruption Fund - made public in two videos, in which a former employee of a gas trading company claims that businessman Hristo Kovachki personally orchestrates multi-million-euro manipulations in the energy sector, siphons company profits into offshore firms, and avoids paying for carbon emissions, all this through a complex network of companies where he is the actual - but not the official - owner. Kovachki has denied the allegations in the Anti-Corruption Fund videos.

Within its legal powers, the CPC will assess whether the reported information points to potential violations of national or EU competition laws, or whether there are market manipulations or insider trading. These types of offenses fall under Regulation (EU) No 1227/2011 (REMIT), where the competent authority is the national energy regulator.

Earlier in June, Parliament voted down a proposal by MPs of Continue the Change - Democratic Bulgaria for establishing an ad hoc committee to look into the allegations for a shady energy business empire owned by Hristo Kovachki.  

Prime Minister Rosen Zhelyazkov said on June 6 that he has ordered the ministers of energy, of finance, of environment and water to look into the findings of the Anti-Corruption Fund about a cartel in the energy sector and other malpractices by an alleged group of companies owned by Hristo Kovachki.