Bulgargaz Halts Gas Supplies to Three Heating Utilities over Debt

Earlier this month Bulgargaz cut by 35% its gas deliveries to Bulgaria's largest heating plant serving the capital Sofia over debt arrears.

Bulgargaz has halted gas supplies to the heating utilities of the cities of Pleven, Burgas and Vratsa, Kovachki's press office said in a statement.

A Bulgargaz official who declined to be named told SeeNews that the halt in supplies came after the three non-paying companies proposed a debt-restructuring scheme that was unrealistic.

In late August, Bulgargaz warned the heating utilities in Sofia, Pleven, Burgas and Vratsa that it would cut their gas supplies over unpaid debts of combined 235 million levs and asked them to propose debt-restructuring plans.

The Sofia heating utility has already cut by 35% hot water supply to its non-paying customers and Bulgargaz has accordingly reduced gas suplies to the heating plant also by 35% since the beginning of the month, the Bulgargaz official said. The heating company has already started paying its 70 million levs debt to Bulgargaz, the official added.

Tolplofikatsia Sofia is jointly owned by the government and the city of Sofia.

The gas monopoly is seeking approval for a 36.51% increase in gas prices to 593.53 levs per 1,000 cubic metres for the year's fourth quarter from the Bulgarian energy regulator. The regulator's decision is still pending.

(1 euro = 1.95583 Bulgarian levs)