Bulgarian Energy Holding ready to buy the debt of Sofia District Heating

October 25 is the final deadline by Sofia District Heating company must pay the overdue BGN 131 million to Bulgaria’s public gas supplier Bulgargaz. The state-owned company said that if the debt is not repaid, there is a risk to the gas supply for the whole country.

Bulgarian Energy Holding (BEH), the parent company of Bulgargaz, told BNT that they are ready to once again buy the debt of Sofia District Heating. Thanks to their readiness, the risk for Sofia residents to remain without heating can be mitigated at this stage.

Valentin Nikolov, Chair of the Management Board of BEH, expressed fears that if the problem with the chronic debt of Sofia District Heating is not resolved in general, we will find ourselves in the same situation in just a few months. He addressed the problem to the Sofia Municipal Council.

For the past 24 months, Bulgargaz has sent over 50 letters to Sofia District Heating with a request to repay the debts. Following the ultimatum last week, the Sofia-based company transferred BGN 10m, the head of Bulgargaz said, but said the debt problem remained unresolved.

"This is extremely insufficient for Bulgargaz to pay for gas to its suppliers," said Nikolay Pavlov, executive director of Bulgargaz.

The financial problem with the district heating company really hangs over the whole country, as supplies to the country are threatened.

The Bulgarian Energy Holding stated that they are ready to buy the debt of the district heating company again so that the residents of Sofia do not remain in the cold.

According to the head of BEH, the holding cannot buy the debts of the district heating company indefinitely, as in this way the company may go bankrupt.

"I mean investments in Sofia District Heating, so that it can fulfil its commitments or the other option is to change the ownership of Sofia District Heating, so that someone else could realize these investments. This requires decision to be taken at political level. It should be a political decision, the Council of Ministers, respectively the mayor and the SMC, "Nikolov said.

Bulgargaz assured that despite the high price of natural gas on world markets and the debts of the district heating company, the company is doing everything necessary to provide the country's natural gas reserves in the winter.

"Bulgargaz is even currently pumping natural gas into Chiren gas storage facility, and we will have by 15% higher quantities in Chiren compared to last year," said Nikolay Pavlov, Bulgargaz's executive director.

According to the head of Bulgargaz, the situation in the country will improve significantly after the gas connection with Greece is launched and we start supplying full quantities of Azeri gas.

Sofia Municipal Council is to announce a precise plan for how the problem will be solved in the long term.

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