site.btaEnergy Minister, Sofia Mayor Looking for Way to Settle Debts of Capital’s Heating Company

The leaderships of the Ministry of Energy and Sofia Municipality are looking for a solution to permanently settle the debts of Sofia’s heating company Toplofikacia to gas supplier Bulgargaz and the Bulgarian Energy Holding (BEH), the Energy Ministry said in a press release after a meeting of caretaker Energy Minister Vladimir Malinov with Sofia Mayor Vasil Terziev on Monday. Malinov was adamant that during the upcoming winter season Bulgargaz will not limit the supply of natural gas to Toplofikacia and heating will not be stopped.

The company's debts to Bulgargaz amount to BGN 829 million and their repayment rates in the first nine months of this year are decreasing compared to the same period last year. From January to September 2024 this decrease is BGN 166 million. Forecast data shows that if this trend continues, by the end of the year the debt will increase to BGN 1 billion. On September 13, Bulgargaz had to apply to the Sofia City Court for a security for a future claim for the amount of nearly BGN 24 million. "This is not the first seizure of Sofia district heating accounts by the gas company. For example, in August 2024, Bulgargaz received BGN 19 million of the total debt after a court decision," the Energy Minister said. 

The short-term solution approved at Monday's meeting foresees a partial payment of the lien by the end of the week so that it can be lifted. As a medium-term measure, a repayment plan for the entire current heating season will be prepared by mid-November, which will be acceptable to Toplofikacia and satisfactory to Bulgargaz. The aim is to avoid any increase in the liabilities. “This is a key step in order to seek a sustainable solution to the problem,” Malinov explained. 

As a long-term measure, the two sides agreed to set up a working group with representatives of the Ministry of Energy, Sofia Municipality, Sofia City Council, Toplofikacia, Bulgargaz and BEH to outline a mechanism for the company's recovery by the end of the year. This mechanism should ensure the possibility for investments and maintain the social tolerance of prices, the energy minister further explained.