Bulgarian state-owned gas company Bulgargaz is at risk of running out of money to pay for supplies from Russia and Azerbaijan after October 25. The crisis is due to the declared debt of the company that manages the central heating system of the capital – Toplofikacia-Sofia.
The leadership of the state gas company issued the warning in a letter to Prime Minister Stefan Yanev, the mayor of the capital Sofia Yordanka Fandakova and the State Agency for National Security.
This company has accumulated a debt of 65 million euros for Bulgargazgas only for the past 10 months and seems unable to pay. This debt endangers the country’s energy security because Toplofikacia-Sofia has 400,000 customers in Sofia and the city depends on central heating in winter. The company is Bulgargaz’s biggest customer
The most serious warning issued by the management of Bulgargaz is that the debts of Toplofikacia-Sofia threaten the contract with the Azeri gas company AGSC for the supply of Azeri gas. The issuer of the bank guarantee under the AGSC gas supply contract claims that the unpaid debts of the Sofia district heating company constitute a “serious risk”. Bulgargaz has guaranteed under a contract that it will not allow Toplofikacia-Sofia’s unpaid debts to rise to a certain level.
The breach of the contract could result in the cessation of the supply of Azeri gas to Bulgargaz even before the interconnection with Greece has started to operate.
âToplofikacia – Sofia’s debt threatens the country’s energy security and long-term strategic projects linked to trade liberalization,â the letter from Bulgargaz reads.
Toplofikacia-Sofia’s gas supply obligations could reach 180 million euros by the end of the year due to rising gas prices.
(Krassen Nikolov | EURACTIV.bg)