The financial blow to “Toplofikatsiya Sofia” will ultimately come back to consumers. This was stated by Prof. Valentin Kolev, chairman of the Bulgarian Energy Employers’ Chamber, in an interview with the Bulgarian National Radio, as quoted by Novini.bg.
According to him, keeping energy prices down does not support the households most in need.
“With this pricing policy for energy products, wealthy people are actually being subsidized, while energy-poor people are not,”Kolev commented.
He emphasized that the energy sector cannot perform social functions and must operate under modern market conditions. According to him, assistance for people who cannot pay their bills should be provided by the Ministry of Labour and Social Policy, rather than through pressure on energy companies.
400,000 households depend on the company
Kolev pointed out the key importance of “Toplofikatsiya Sofia” for the capital’s energy supply. More than 400,000 households are heated by the company.
The expert also highlighted the risk in the event that its operations are suspended. On cold days, Sofia’s electricity load is around 1,000 megawatts, while the heat load can reach 2,000 megawatts. According to him, a similar figure was recorded in 2017.
In the hypothetical event that “Toplofikatsiya Sofia” ceases operations, the additional load would have to be taken on by the electricity grid. This would burden the system with consumption that is currently covered by the district heating company.
The network needs investment
The replacement of the outdated heating transmission network requires funds that the company does not have, Kolev said. He pointed out that costs are rising because of the prices of natural gas, labor and all types of materials.
His comment comes against the backdrop of a decision by the Energy and Water Regulatory Commission to raise the price of natural gas by 32.52% in November. The report also stated that assurances had been given that the increase would not affect electricity and heating bills.
“At present, only “Toplofikatsiya Sofia” has to absorb this financial blow, but I guarantee to you that it will come back to us,” Kolev said. Despite the financial difficulties, he predicted that the company would deal with the technical problems.
Sources: novini.bg