Minister Malinov: We are looking for a solution for a permanent settlement of the debt of Heating Sofia to Bulgargaz and BEH

The leaderships of the Ministry of Energy and of the Sofia Municipality are looking for a solution for a permanent settlement of the obligations of "Heating Sofia" to "Bulgargaz" EAD and BEH EAD, it became clear after a meeting of the Minister of Energy Vladimir Malinov with the Mayor of Sofia Vasil Terziev. Minister Malinov was adamant that during the upcoming winter season, Bulgargaz will not limit the supply of natural gas to the metropolitan company and the heating of the residents of the capital will not be stopped.

The liabilities of "Heating Sofia" to "Bulgargaz" amount to BGN 829 million, and the pace of their repayment during the nine months of this year is decreasing compared to the same period last year. From January to September 2024, this reduction is by BGN 166 million. Forecast data indicate that, if this trend continues, by the end of the year the debt will grow to BGN 1 billion. This necessitated on September 13 2024 "Bulgargaz" to submit to the Sofia City Court an application for the admission of collateral for a future claim for the amount of nearly BGN 24 million. "This is not the first seizure of accounts of "Heating Sofia" by the gas company. For example, in August 2024, "Bulgargaz" received BGN 19 million of the total debt after a seizure and a court decision," said the energy minister.

The short-term decision agreed at today's meeting envisages that by the end of the week a partial payment will be made on the lien, so that it will be lifted, informed Minister Malinov. As a medium-term measure, it is planned to prepare a repayment plan for the entire current heating season by the middle of November, which is acceptable to "Heating Sofia" and satisfactory to "Bulgargaz". The aim is to prevent an increase in liabilities. This is a key step in order to find a sustainable solution to the problem," explained Minister Malinov.

As a long-term measure, the two sides agreed to create a working group with representatives of the Ministry of Energy, the Metropolitan Municipality, the Metropolitan Municipal Council, "Heating Sofia", "Bulgargaz" and BEH, which by the end of the year will draw up a mechanism for the recovery of the company. This mechanism should provide an opportunity for investments and preserve the social tolerability of prices, explained the energy minister.