Fandakova: It is inadmissible for EWRC and "Bulgaraz" to cut off gas from Sofia District Heating in order to put gas in Chiren

Mayor of Sofia Yordanka Fandakova defined as "inadmissible and unprecedented" the statements of "Bulgargaz" and EWRC about the suspension of gas supply to "Sofia District Heating" from September 1. The reason is the lack of natural gas, not the inability of the capital heating company to pay its debts. It is rumored in the public space that the gas for the citizens of the capital will stop in order to fill Chilen. The problem is that if the whole of Sofia switches to electricity, which will happen in the absence of gas for heating, the electricity network will not last and residents of the capital will be left in the dark and cold, and business will stop.

We remind you that a day earlier EWRC announced that it was starting an extraordinary inspection due to the debts of "Sofia District Heating". The inspection was appointed after receiving a letter from "Bulgargaz" EAD regarding the overdue obligations of the district heating company under a contract for the supply of natural gas, which as of July 18, 2022 are in the amount of BGN 328,228,561, the regulator announced. If the arrears are not paid by August 20, 2022, Bulgargaz intends to terminate the natural gas supply contract from September 1, 2022, in order to guarantee supplies to the remaining customers, the letter also states.

Mayor Yordanka Fandakova defined as "inadmissible and unprecedented" the statements of "Bulgargaz" and EWRC about the suspension of gas supply to "Sofia District Heating" from September 1. From there, they recalled that the capital's heat has uncollected income in almost the same amount as its obligations to "Bulgargaz", and this was recorded in the EWRC report on determining the prices of heat from July 1. Just a day ago, the previous chairman of EWRC, Stanislav Todorov, also supported the idea to stop the natural gas supply to Sofia District Heating.

Fandakova accused the state of not being able to provide the necessary amount of gas for the capital. This, according to her, is the reason for the warning by EWRC and "Bulgargaz" that the supply of blue fuel to "Heating - Sofia" will be stopped from September 1: "It is unthinkable to say that it stops the heat supply for more than 1 million Sofia residents. in order to divert these quantities to the Chiren gas storage facility. This is a frank admission that there are not enough contracted quantities of gas - something that Bulgargaz admitted a few days ago. And because there are no quantities of gas, they are taken from the largest heating plant".

If the state wants to help its company "Bulgargaz", it can immediately repay the money that is recognized as being owed to "Toplofikatsia" for the entire past regulatory period. The other option is to make an agreement and have these funds go directly to "Bulgargaz" or to BEH, there is no problem with that, we have proposed it many times. Negotiations between "Sofia District Heating" and BEH and "Bulgargaz" continue in order to find a solution. The solution is this, but it is right and fair to admit that actually the big problem is that there are no agreed quantities of gas, that is actually the most important thing to really find a solution, not to transfer from the sick head to the healthy one.

We remind you that currently the biggest consumer of natural gas in our country is the capital heating plant. It consumes about 1/3 of the entire amount of gas supplied to our country. The municipal enterprise is mired in debts to the state and they are constantly increasing over the years. Until a few months ago, the deferred liabilities of "Sofia District Heating" to "Bulgargaz" and BEH were for nearly BGN 1 billion, and there was even talk of the idea of ​​the capital heating plant becoming part of the energy holding. Sofia District Heating continues to operate for the third year at a loss, and the lack of capital investments and inadequate repairs lead to more accidents in the network. Only a month ago, the company's trade unions also warned that they were demanding to improve working conditions in the company and to increase their wages.

Fandakova explained that the amount of BGN 332 million was accumulated because when the price of heating was determined in July last year, BGN 49 per megawatt hour was set, and the company bought blue fuel for BGN 130 per megawatt hour or a 180% difference. And in the new heating season, the problem is expected to continue, as the blue fuel is currently 57% more expensive than the formula for the price of heating.

Fandakova also reminded that "Sofia District Heating" still does not have a contract with "Bulgargaz" for supplies from January 2023. Usually, a contract for supplies is signed precisely in the summer season.

The Chairman of the Municipal Council in Sofia, Georgi Georgiev, recalled that the municipality has already started a procedure to look for an investor in the capital's heating system, who will receive the management company of a private company for a period of 35 years. In return, funds will be invested in the construction of new capacities for the combined production of electricity and thermal energy, expand the heat transmission network and subsequently increase the company's income.