site.btaSofia Heating Utility CEO Says Debt Settlement Agreement with Gas Supplier Is Forthcoming, Central Heating Is Not at Risk

Reacting to reports that the Sofia heating utility has had its accounts distrained by public gas supplier Bulgargaz over BGN 2 billion in debts, putting to risk the municipal central heating service, the heating utility CEO, Petar Petrov, told BTA that there is no risk for the beginning of the heating season in Sofia and that they are about to conclude a debt settlement agreement with Bulgargaz. 

Petrov said, "There is no risk for the start of the heating season in Sofia. There is reason to worry. A single account has been distrained. We are busy negotiating with Bulgargaz. We are about to reach an agreement and end this whole drama." 

He also said that there is no risk for the usual operations of the company and "it is unneccessary to raise tensions on the matter".

Asked what his his explanation for the timing of the distrained, he said that Bulgargaz may be experiencing a need for cash. "It is not a decision that has been discussed with us. We were surprised to hear of it. We immediately contacted the management of Bulgargaz and explained what we can do at this point and I believe that we will have a positive outcome by the end of the week. The process of distraining the other accounts can been called off," he said.

He added that the company will also pay out the monthly wages to staff as usual.