site.btaBulgargaz Seeks Meeting with Sofia Mayor over Sofia Heating Utility's Outstanding Debt

State gas supplier Bulgargaz has requested a meeting with Sofia Mayor Vassil Terziev next week to seek an urgent solution to the problems facing the Toplofikacia Sofia heating company, the supplier said in a press release on Friday.

In connection with negotiations on a new natural gas supply contract for 2027, as well as the start of the heating season and the district heating company's low payment levels, Bulgargaz has requested comprehensive, up-to-date information on Toplofikacia Sofia's financial and liquidity position. This includes revenue from electricity sales through the Independent Bulgarian Energy Exchange, an updated payment schedule for its obligations to Bulgargaz through the end of the 2026/2027 price period, and a 13-week forecast of expected cash flows and sources of financing.

Toplofikacia Sofia's outstanding debt to Bulgargaz exceeds EUR 900 million, and the company has repeatedly failed to meet the agreed repayment schedule, the gas supplier said. It added that the financial information was needed to assess the district heating company's ability to pay for current natural gas deliveries and repay its accumulated debt.

The continued growth of the debt and insufficient payments make it necessary for Toplofikacia Sofia to undertake specific commitments backed by secured financing, Bulgargaz said.

As of Friday, Bulgargaz had still not received the requested information, despite explicitly requiring it to be provided by October 22. The supplier said it considered it unacceptable that, with the heating season under way and outstanding debt, Toplofikacia Sofia had failed to provide even basic information about its financial position. This raised serious doubts about the company's readiness to take concrete action to address its worsening financial problems, the supplier added.

On September 11, Energy Minister Iva Petrova said Toplofikacia Sofia's total liabilities to Bulgargaz and the Bulgarian Energy Holding (BEH) exceeded EUR 1.28 billion. She said the two companies were currently providing the financial resources needed to maintain gas supplies despite the district heating company's persistent failure to meet its obligations.

To secure natural gas deliveries, Bulgargaz is seeking additional liquidity support from BEH and commercial banks through credit lines. While this has allowed supplies to continue, it does not constitute a sustainable model, Petrova said.