site.btaSofia Mayor: Potential Heat Supply Cessation Would Be Due to Lack of Gas, No Other Reason

If heat supply stopped, it would be due to lack of natural gas and no other reason, according to Sofia Mayor Yordanka Fandakova, who spoke on Friday at a press conference here about the debts of the capital's district heating utility Toplofikacia Sofia to its gas supplier Bulgargaz.

"It would be unthinkable to have [the Government] say that they are cutting off the heat supply of over a million people in Sofia, so that gas could be diverted to Chiren [Bulgaria's natural gas storage facility]. That would be a frank admission that they lack the necessary amounts of gas, which is what Bulgargaz admitted to a few days ago," the Mayor said. She concluded that the insufficient gas quantity could potentially force the government to divert from the country's largest heating utility and described such a move as a "complete failure and irresponsibility".

"Toplofikacia Sofia owes BGN 328 million to Bulgargaz, meanwhile the State, represented by the Energy and Water Regulatory Commission (EWRC), officially admitted that [Toplofikacia Sofia] is yet to recover an income of BGN 332 million from the last heating season," Fandakova said.

When asked about the likelihood of Toplofikacia Sofia having its gas supplies suspended in September, the Mayor said that first the gas supplies guaranteed by Bulgargaz must be clarified.

The EWRC appointed an inspection of Toplofikacia Sofia on Thursday, after Bulgargaz notified the Commission of the outstanding debt of BGN 328 million. Toplofikacia's principal is the Sofia Municipal Council.

The late payment has put Bulgargaz in a tough financial situation. If the debts are not paid by August 20, gas supplies to Toplofikacia Sofia will be cut off by September 1 by terminating the gas supply contract. Bulgargaz will take legal action to collect its debts, the supplier stated.