'Bulgargaz' Requested Urgent Meeting with Mayor Terziev Regarding Sofia District Heating Company's Debts

Bulgaria's state-owned public natural gas supplier, Bulgargaz EAD, has requested an urgent meeting with the Mayor of Sofia, Vasil Terziev, over the debts owed by Sofia district heating company, Toplofikatsiya Sofia EAD, the company announced in a statement to the media on October 23.

In connection with negotiations on signing a new natural gas supply contract with Sofia district heating for 2027, and in view of the start of the heating season and the low level of payments by the district heating company, the management of Bulgargaz EAD has requested full and up-to-date information from Sofia district heating company on its financial and liquidity position. This includes information on revenue from electricity sales through the Independent Bulgarian Energy Exchange EAD (IBEX), an updated payment schedule for amounts owed to Bulgargaz EAD until the end of the 2026/2027 price period, and a 13-week forecast of expected cash flows and sources of financing.

Toplofikatsiya Sofia EAD owes Bulgargaz EAD more than €900 million and has repeatedly failed to comply with the agreed repayment schedule. Up-to-date financial information is therefore needed to enable Bulgargaz to assess the district heating company’s ability to pay for current natural gas supplies and repay its accumulated debt, the statement reads.

“The continued growth of liabilities and insufficient payments make it necessary to secure specific commitments backed by guaranteed financing. To date, Bulgargaz EAD has still not received the requested information from Toplofikatsiya Sofia EAD, despite the public supplier’s explicit insistence that the data be provided by 22 October this year.

Bulgargaz EAD considers it unacceptable that, with the heating season under way and accumulated debts exceeding €900 million, Toplofikatsiya Sofia EAD continues to withhold even basic information about its financial position. This casts serious doubt on the district heating company’s readiness to take concrete action to resolve its deepening financial problems.

The management of Bulgargaz EAD has now requested a meeting with Sofia Mayor Vasil Terziev next week in order to seek an urgent solution to the problems surrounding Toplofikatsiya.”