site.btaOver BGN 680 Mln of Sofia Heating Utility's Debts Paid Off to Bulgarian Energy Holding, Bulgargaz

Over BGN 650 million of Sofia's Toplofikatsiya heating utility's debts to the Bulgarian Energy Holding and Bulgargaz have been paid off, said here on Monday Sofia City Council (SCC) Chairman Georgi Georgiev during a joint briefing with caretaker Energy Minister Rossen Hristov.

Georgiev said that an agreement has been signed with Bulgargaz and the natural gas supplies for the heating utility are guaranteed for all of next year. "All the needed natural gas quantities for Sofia will be ensured starting 7:00 am on January 1, 2023, until the end of the year, for which I would like to thank the Minister and the company for their fast response. This is the first significant result," Georgiev said.

A debt set-off agreement has been drafted and signed, so that the company can take a breath of fresh air, the SCC Chairman said. "We insist that the State introduces compensatory mechanisms like the ones for fuels and electricity, so that the price increase will not be at the people's expense," he said, recalling that this has been his and the Sofia Mayor's position since the very beginning.

According to Georgiev, the previous government's inaction has cost Sofia residents BGN 480 million, because the natural gas price increase since last September was not compensated in any fashion.

Minister Hristov said that the working group involved with Toplofikatsiya is working hard and has made significant progress in just a few weeks. The SCC's and the Energy Ministry's goal is to help the heating utility recover and grow, Hristov said. "Right now, we are focusing on these urgent measures on setting off debts and addressing the problems related to the money flow, but these are just interim steps, while our final goal is to have a company that works independently without constant need for assistance, [a company that] can provide heating energy to Sofianites at optimal prices and function on a market-based principle. In the next weeks, we plan to draft the remaining parts of the project for stabilizing the company," he said.

Georgiev added that the goal is to attract an international investor to allow Toplofikatsiya to produce electricity, from which it can generate profits and get stabilized.

At the end of last month, Sofia Mayor Yordanka Fandakova said that Toplofikatsiya Sofia is working on a procedure to find an external investor at SCC's request. She said that the heating utility's ownership must remain public, regardless of whether it will be managed by the Municipality or the State. According to her, the company's privatization is not on the agenda. An external investor must be found to manage Toplofikatsiya, while the plan drafted by town hall provides for this to be carried out in the form of external management, she said.