Toplofikatsiya Sofia’s liabilities to companies within the Bulgarian Energy Holding group have already exceeded €1.3 billion. This was announced by Energy Minister Iva Petrova, who called for changes to the management of the municipal company.
According to her, the aim is to stop the accumulation of new debts and ensure reliable district heating for the capital’s residents. “An effective management mechanism for the company must be found to stop the accumulation of debt and, above all, guarantee a high-quality service for the residents of Sofia,” Petrova said.
Inspections have identified management problems
The minister said that inspections by the Ministry of Energy had identified problems related to the organisation of work, management and Toplofikatsiya Sofia’s preparations for the heating season.
Petrova did not specify a particular option for the future management model. Asked whether the company could come under state control, she said that various solutions were possible, but they had to take into account the position of the owner – Sofia Municipality.
The Electricity System Security Fund has around €250 million
The energy minister rejected concerns that the cost of compensation could jeopardise support for consumers next winter. “Categorically not,” she replied when asked whether such a risk existed.
According to her, the most recently announced balance of the Electricity System Security Fund before a parliamentary committee was approximately €250 million. The amount is constantly changing, as new revenues are paid into the fund while payments are simultaneously being made under the existing compensation programmes.
Petrova explained that the fund’s budget is planned for a regulatory period running from the middle of one year to the middle of the following year. In her view, revenues and expenditure must be balanced within these parameters so that current compensation does not jeopardise the financing of future measures.
Support for households using natural gas
A mechanism to support household natural gas consumers is also being prepared. The compensation is expected to be reflected directly in bills, similarly to the support provided for electricity.
The amount will be determined according to the difference between Bulgargaz’s regulated price and the forecast price set by the Energy and Water Regulatory Commission for the relevant regulatory period. The state will cover half of this difference.
“If we take the regulated price for last month compared with the forecast price of the EWRC for the regulatory period, the support should come to around €8 per megawatt-hour,” Iva Petrova said.
Sources: nova.bg