Today, the capital heat company will present an analysis to EWRC on how it will repay its obligations to Bulgargaz

Energy / Bulgaria
3E news
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Source: Georgi Velev / 3eNews

The deadline of "Sofia Distrct Heating" for the submission to EWRC of a schedule for repaying the obligations to "Bulgargaz" EAD expires today, September 30. The company must inform about all the actions it takes to improve its financial situation. In the same period, the regulator expects to receive an accurate report on the amount of paid arrears to Bulgargaz EAD as of 08/20/2022, as well as the amount of current liabilities to Bulgargaz EAD as of 08/31/2022.

"Sofia Distrct Heating" EAD must inform the Commission whether supplies of natural gas for the production of heat and electricity are planned, EWRC announced. These mandatory prescriptions are given by the energy regulator in the report on the extraordinary inspection of the partnership, adopted on 19.09.2022. She was appointed after receiving a letter from the management of Bulgargaz EAD regarding the heating company's high indebtedness for natural gas deliveries.

The public supplier signals that as of July 18, 2022, the overdue obligations of the heating company under the supply contract amount to BGN 328 million and this outstanding debt puts the gas company in a difficult financial situation. There is a real risk to the country's energy security, as the accumulated liabilities create a liquidity crisis and Bulgargaz will have difficulty securing the necessary funds to guarantee supplies under the contracts with its other customers, the letter to EWRC states.

In the course of the inspection, the regulator carried out a detailed analysis of the company's income and expenses in order to establish the reasons for the high indebtedness of "Sofia Distrct Heating" to "Bulgargaz" during the past price period 07/01/2021 - 06/30/2022. To clarify the reasons The commission demanded from "Sofia Distrct Heating" all the documentation and a complete analysis of the cash flows with all types of receipts and payments, for each month during the specified period: revenues from the sale of thermal energy; revenues from the sale of electricity on the free market; reported expenses for the purchase of natural gas by month for the period 01.07.2021 - 30.06.2022; actually charged and collected proceeds from the sale of electricity and from the sale of thermal energy.

From the data provided, it is clear that for the period 07/01/2021 - 06/30/2022 "Sofia Distrct Heating" realized revenues from the sale of electricity on the free market in the amount of BGN 327 million. From the sale of thermal energy, the company received BGN 380 million. During the one-year period, Bulgargaz delivered 7,821,189 MWh of natural gas to Sofia Distrct Heating EAD, and the company's expenses for these amounts amounted to BGN 911 million.



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