Sofia Municipality is preparing a program for restructuring of Sofia District Heating

It is necessary to work on measures to compensate District Heating Sofia and other consumers of natural gas for the sharp rise in the price of natural gas and this compensation should not be in the form of loans. Because the loan again transfers to the end user the responsibility for paying for this failure of the non-functioning market mechanisms.

This was said by the Deputy Mayor of Sofia Doncho Barbalov at the round table, initiated by President Rumen Radev, about measures to solve the problem of high prices of electricity and natural gas.

Barbalov pointed out that due to the highly regulated heat market in the country, losses are generated in Sofia District Heating and added that this is not unexpected. But the bad thing about regulated markets is that sooner or later the price is paid and usually paid by consumers.

Doncho Barbalov said that they are working on the long-term reform of District Heating, a program has been prepared and its discussion in the SOC is forthcoming. We will seek assistance and contacts with the ministries, because only with all the efforts of the state and municipal institutions we could restructure the district heating company - Sofia, so that we can ensure its existence for years to come, said Doncho Barbalov.

He also commented that he found it very strange that three weeks earlier the start of the heating season would disrupt gas supplies to the country, adding that it was a matter of planning. In the end, the heating season depends on the weather conditions - when it is cold, we turn on the heating, when it is warm, we turn it off, said the deputy mayor.

Regarding the negotiations of District Heating Sofia with Bulgargaz, Barbalov pointed out that they are very difficult. By the end of last year, the company was negotiating with Bulgargaz, some improvements in the contract were achieved and at the end of the year the contract was signed within the deadline, he added.