Energy Minister on the Main Role of the Bulgarian Energy Holding

The main role of the Bulgarian Energy Holding (BEH) is to support financially its subsidiaries such as Toplofikatsia Sofia EAD, the capital city's district heating company, in order to protect energy security. This was stated by Energy Minister Temenuzhka Petkova during today's parliamentary scrutiny in response to a question on the receivables sale agreement between Bulgargaz EAD and BEH concerning debt owned by Toplofikatsia Sofia EAD, Focus News Agency reports.

"In August this year, the Ministry of Energy, the Bulgarian Energy Holding and Bulgargaz held talks and it was agreed that BEH will purchase Bulgargaz' receivables from Toplofikatsia Sofia owned for the delivery of natural gas for the period February - August 2018. According to the regulations, an independent market assessment of the receivables was made on August 28, 2018, according to which, the market value of the receivables coincided with their nominal value - BGN 99,192,898," said Minister Petkova. She explained that the negotiations between BEH and Toplofikatsia Sofia regarding the terms of the receivables contract are still underway. "Sofia Heating is a very important company for the energy security of the country. Another very important thing is that its debts have been accumulating since 2002. What the management of the company and Sofia Municipality are trying to do is to improve the debt collection rate, and it certainly has. It is also important to know that Toplofikatsia Sofia is Bulgargaz' largest client accounting for almost 40% of its revenues and the consumption of natural gas. Thus the main role of BEH is to support its subsidiaries through funding of this kind and to intervene if necessary to protect the country's energy security," said Minister Petkova.