site.btaWorking Group to Draft Plan for Recovery of Sofia Heating Utility

A working group from the Ministry of Energy, the Bulgarian Energy Holding, the Sofia Municipality, the Sofia City Council, and heating utility Toplofikatsiya will prepare a plan for the company's recovery.

Speaking to reporters as she inspected ongoing infrastructure repairs in Sofia on Wednesday, Sofia Mayor Yordanka Fandakova said that last Friday, at her request, a meeting was held with Prime Minister Galab Donev, the ministers of Energy, of Finance, and of Economy, and the chairman of the Sofia City Council, to consider possible solutions for the dire financial straits of the Sofia heating utility company against the backdrop of dramatically rising gas prices.

At the meeting, Fandakova briefed the Prime Minister on the current state of the company and the experts' forecast that at current gas prices the company would accumulate new liabilities of nearly BGN 500 million by the end of the year.

"The previous government and parliament did not adopt compensations for gas. This means that all heating utilities and businesses are working without any compensation for gas," Mayor Fandakova said.

The group is expected to draw up a recovery plan for the company within a very short time, which will include the implementation of a modernization plan.