site.btaPublic Gas Supplier Bulgargaz Distrains Sofia Heating Utility's Bank Accounts

Public gas supplier Bulgargaz EAD has distrained the accounts of the Sofia heating utility company, the Bulgargaz press office confirmed for BTA Thursday.

Earlier in the day, the Bulgarian National Television reported that the heating utility's accounts have been frozen over outstanding debts for gas supply. 

Sofia Mayor Vassil Terziev said that the distraint order is for BGN 25 million. He said that "there is a huge systemic problem because the company has BGN 1.6 billion in debts". "It is very important to work together with the government because both the Sofia public transport and the heating utility call for the active role of the central government, which is very hard in an environment of endless election campaigns when it is hard to take responsibility and make decisions," said Terziev.

Asked to comment the situation with the heating utility at a news briefing, Ivan Takov of the Sofia Municipal Council (Socialist) that the company has run into some BGN 2 billion of debt over the years. The debt to Bulgargaz and the Bulgarian Energy Holding alone stands at over BGN 1.5 billion. "An adequate decision is needed and it should have been made years ago," he commented. He recalled that working groups in the Sofia Municipality came halfway to a solution but no final decisions were ever made for improving the situation of the company. "There were ideas for modernization, for attracting an external investor, what not. All that was swept under the carpet, including by the previous leadership of the Sofia Municipality. That is why I am not surprised by what is happening but I am concerned, now that winter is coming," he said.

The City Hall and Municipal Council were dominated by GERB for over a decade until the local elections in 2023, when CC-DB/Save Sofia won the mayor's office but fell short of winning a majority in the Municipal Council to back the new mayor's decisions and projects.

Another municipal councilor, Boris Bonev (Continue the Change - Democratic Bulgaria and Save Sofia), put the blame for the situation squarely on GERB. He said that the accounts of the heating utility, whose principal holder is the Sofia Municipal Council, are being distrained "for political purposes under a government headed by a Prime Minister who has been a GERB MP in six parliaments and this happens only a day after the heating utility says that it is ready to begin the new heating season". "To distrain accounts over problems that have existed for decades: it is clear to everyone why it is being done," said Bonev.