"Save Sofia" opposed the request of the Confederation of Employers and Industrialists in Bulgaria (KRIB) that the Sofia Municipal Council (SOC) take action as soon as possible on the concession procedure for "Toplofikatsiya Sofia" EAD due to the company's record financial loss.
The party warns that the possible concession hides risks and insists on taking urgent action for the decentralization, modernization and technological transformation of "Toplofikatsiya Sofia.
The party states that the opinion of KRIB confirms their claims that the district heating company is in a state of complete technical and financial collapse. "The announced record loss of 426 million leva for 2025 (three times worse result than in 2024), the 24% collapse in electricity sales and the maintenance of an inflated staff of over 2,200 employees without process optimization are clear evidence of systematic mismanagement and lack of vision", commented "Save Sofia".
The party points out that the business call for urgent measures is fully justified, but the proposed mechanism for concessioning "blindly" contains extremely high risks for the Sofia Municipality and its citizens.
The formation insists on a radical change in the way the company is managed, on carrying out a full technical audit to analyze the technical condition and identify key material risks, as well as on preparing a new master plan and roadmap for modernization that would transform "Toplofikatsiya Sofia" into a modern, flexible and decarbonized service.
The party defines as an illusion the expectation that a concession procedure will automatically solve the problems of "Toplofikatsiya Sofia". "Given the scale of the accumulated debts and the depreciation of the facilities, the company cannot pull itself out of the swamp by the hair like Baron Munchausen", "Save Sofia" states.
The party points out that no serious investor will enter a company with such a financial burden unless the state or the municipality covers all accumulated debts in advance with taxpayers' money and guarantees it super-favorable conditions.
The party estimates that covering the accumulated debts by the municipality would cost around €2,150 to every working taxpayer in Sofia. "This is an unfair transfer of the bill for decades of mismanagement onto the citizens. It is also key to guarantee clear conditions for the future price of heating under a new owner, so that it remains socially bearable and that this is an entry condition", state "Save Sofia".
According to the formation, if a concession is initiated without a clear technical plan and with lowered requirements, there is a real danger that the company will fall into the hands of an unscrupulous entity. "Our experience from the recent past shows that such scenarios end with the draining of assets and the cutting of facilities into scrap metal", the party points out.
"Save Sofia" is categorical that the only sustainable solution to saving Sofia's heating is the deep technological reconfiguration of the company. They insist that instead of pouring tens of millions annually into repairing worn-out routes with high losses, the funds should be directed towards investments in a new generation of equipment.
They also propose a gradual shift from complete dependence on natural gas through cheap, local renewable production and investments in large-scale industrial heat pumps and heat accumulators, which would provide not only cost-effective heating in winter, but also the possibility of cooling in summer. The party specifies that this modern service will bring new revenues to the company.
The party also insists on radical decentralization - the construction of local modular power plants and water supply/central heating networks with low technological losses (1-2% compared to 15% total losses at the moment), which would significantly reduce depreciation and transmission costs.
"Save Sofia" insists that the Sofia Municipal Council take political responsibility and immediately present an action plan for the transformation of "Toplofikatsiya Sofia", based on expertise and clear goals.
"Before making any concession decision, the SOS should commission an independent full technical, financial and legal audit, which would provide a realistic picture of the assets, liabilities, network status, production capacities and future investment needs of the company. A technical audit report has been submitted by the "Spasi Sofia" group. more than a year ago (on April 17, 2025), but has since been postponed by committees," the party states.
According to the formation, Sofia Municipality must prepare and adopt a new General Plan and a specific Roadmap for technological transformation until 2035, including decentralization of production, new modular capacities, industrial heat pumps, heat accumulators, renewable energy sources and a gradual reduction in dependence on natural gas.
The party states that the conditions of any future form of public-private partnership or concession must be consistent with this plan and be part of the negotiating framework of Sofia Municipality with a possible future concessionaire. They also point out that the future of "Toplofikatsiya Sofia" should not be sold or given away EAD, without it being clear how and at what price citizens will continue to have heating and hot water.
"Sofian residents should not be forced to pay twice: first for years of mismanagement through the price of the service and municipal budgets, and then for rescuing the company if it is given to a private operator under conditions that are disadvantageous to society", point out "Save Sofia" and add that the goal should be to transform the company from a financial burden into a modern urban energy system - more efficient, cheaper, cleaner and oriented towards the needs of the capital's residents.
Source: news.bg