The Debts of Bulgarгаз and Toplofikatsia Sofia Have Exceeded €1.5 Billion

The liabilities of “Bulgargaz” and “Toplofikatsia Sofia” have now exceeded €1.5 billion. This became clear at a meeting of the parliamentary energy committee, as residents of the capital protested over the lack of heating and hot water in a number of districts.

The public supplier has requested a nearly 14% increase in the price of natural gas for December. In November, the increase was almost 33%. In addition to the unpaid invoices owed to the Turkish company “BOTAŞ” under the gas supply and transmission contract, Bulgargaz’s financial situation is also being weighed down by overdue payments from “Toplofikatsia Sofia”.

“Bulgargaz”: Not a single euro has been received since May

Bulgargaz’s loss amounts to €262 million, with the debts of the Sofia-based heating company not included in this sum. The executive director of the public supplier, Georgi Tatarski, said that the company could not finance supplies for “Toplofikatsia Sofia” indefinitely.

“Bulgargaz” is not a payday lender, nor is it a bank. We charge statutory interest on late payments. With this interest, we encourage payment for the gas supplied. From May until today, not a single euro has been received in Bulgargaz’s accounts from “Toplofikatsia Sofia”, Tatarski said.

According to him, the delayed payments accrue interest, but this does not solve the problem of the liabilities accumulating between the two companies.

More than €1.3 billion in debt owed by the Sofia-based company

Energy Minister Iva Petrova announced that “Toplofikatsia Sofia” owes more than €1.3 billion to the Bulgarian Energy Holding group. Various options for the company’s financial recovery have been discussed for years, but no concrete result has been achieved.

“An effective mechanism for managing the company must be found, one that will stop the accumulation of debt and, above all, guarantee quality service for the residents of Sofia,” Petrova said.

The financial problems are unfolding in parallel with breakdowns in the district heating network. During a hearing before the Sofia Municipal Council, the management of “Toplofikatsia Sofia” did not specify a concrete deadline for resolving them and restoring the heat supply.

Thus, the company remains simultaneously confronted with accumulated debts, unpaid natural gas supplies and dissatisfaction with the quality of the service. Residents of the capital continue to wait for heating and hot water to be restored in the affected districts.