Sofia Municipal Council is to decide on the new Sofia Heating Utility (Toplofikacia) director at today’s session. There are five candidates: Lyubomir Kichev, Petar Iliev, Stoyan Todorov, Ognyan Nechev and Nasko Mihov. The Municipal Council representatives in the General Assembly of Sofia Heating Utility will be given a mandate to propose the council’s front-runner at tomorrow’s session in the Heating Utility. If the candidate proposed by the Municipal Council is elected a member of the Board of Directors, he will not become an executive director automatically. Voting in the General Assembly will decide on the new director.
Source: Agency Focus (11.01.2007)

Bulgaria's sell-off regulator said it has started negotiations with Ljubljana-based Holding Slovenske Elektrarne for the privatisation of the Ruse district heating company. Slovenske Elektrarne was tapped to acquire the steam producer after pitching the highest cash bid - EUR 85.1 mln, for a 100 per cent stake. The sale contract will be signed within a 90-day period starting from December 7, 2006, said the Privatisation Agency, France's Dalkia International and Germany's E.ON Energie AG also bid for the Bulgarian heating utility. Dalkia was picked to acquire the heating utility in Plovdiv. Austria's EVN will buy the district heating company in Varna. The Privatisation Agency will open privatisation procedures this year for the heating company based in Shumen. A memorandum signed by the Sofia municipality, the energy ministry, the World Bank and the EBRD envisages the divestiture of the Sofia heating company by the end of 2007.
Source: Dnevnik (15.01.2007)

A majority is taking shape in the Sofia municipal council that wants to settle the outstanding payments of stricken Sofia district heating company to gas supplier Bulgargaz in a debt-for-equity deal, Dnevnik learned from councillors on condition of anonymity. The municipality is likely to resort to the swap if no other way is found to turn around the dismal fortunes of the company. The scheme has already been employed once and as a result the state acquired a 42 per cent stake in the heating company.
Source: Dnevnik (16.01.2007)

Sofia residents will shiver with cold because of the strike in Toplofikatzia (Central Heating Company.) The company's employees warned that they would stop working in several days. They complain of the miserable salaries of BGN 200 (EUR 1 = BGN 1.95) which haven't been increased for nine years already when Valentin Dimitrov headed the company. "The directors constantly infringe upon our rights," the employees say. Because of the managerial crisis there isn't anyone authorized to sign their payment orders. The newly elected head of Toplofikatzia Nasko Mihov will assume office in a week when he will be officially registered by the court. If we don't take our salaries by January 20 we will launch a strike, threatened the Toplofikatzia employees. According to the meteorologists, it's then when the cold days in Sofia start.
Source: Standart (18.01.2007)

The Sofia Municipal Privatisation Agency is seeking to hire a consultant for the privatisation of 56 per cent of the capital of the Municipal Insurance Company (MIC). The bid receipt deadline is March 19. The tender documents can be purchased until March 12. After the appraisal of the insurer is ready, the municipal council will decide on the sell-off format: auction, competitive procedure or bourse listing. It is expected that the municipal council will manage to unload the MIC stake before its term expires in October this year. Potential buyers would pursue the insurer, one of the nation's smallest with a market share of 0.76 per cent and January-September 2006 premium income of BGN 5.48 mln, mainly for its licence and steady position. Last year, local businessman Hristo Kovachki accumulated a 20 per cent stake in MIC after several equity transactions. Another local insurer, Lev Ins, had also notified to the municipality its interest in the company. According to municipal councillors, representatives of insurer Armeec had also inquired about the possible sell-off.
Source: Dnevnik (22.01.2007)

France's Dalkia and the Privatisation Agency will sign on Tuesday the contract for the privatisation of 100% in the Varna heating utility, the PA said. Dalkia International was selected as the buyer after the French company offered EUR 6.78 million for the heating utility. The contract will be signed by PA CEO, Todor Nikolov, and by Jerome Ladriere, head of Dalkia International for Central and Eastern Europe.
Source: Monitor (30.01.2007)

The Sofia municipal council will decide February 8 whether the municipality itself and the state or the World Bank will pay for the services of the consultant that will advise the privatisation of the Sofia district heating company. If the councillors hire as consultant the IFC, the private sector arm of the World Bank, no competitive procedure will be organised because that is not required by the international lender. Under this option, 20 per cent of the advisory costs will be covered by the municipality and the central government, the adviser will self-finance the balance and will pocket a higher success fee. If the financing for the advisory contract is provided by the owners of the heating utility, the consultant will be selected on a competitive basis. There is also an option for the Privatisation Agency to pick a consultant and pay for his services as it has done in major sell-off transactions. However, according to sources from the group working on the privatisation of the heating company, the municipality is balking at this option. The financing issue emerged after the finance ministry rejected a proposal from the economy ministry and the municipality to pay the consultant with some of the EBRD funding left over from a loan for the rehabilitation of the heating utility, saying that would require changes to the parliament-approved guarantee agreement. In September 2006, the economy ministry, the Sofia municipality, the World Bank and the EBRD signed a memorandum for the privatisation of the utility by the end of the year.
Source: Dnevnik (30.01.2007)

Heat Supply-Sofia JSC surprisingly awoke with a new manager. After Petar Iliev resigned last week as deputy Operations Manager, Ignat Bozhinov, ex-chairman of Heat Supply - Pernik, took his seat yesterday. Obviously Atanas Mihov has decided to clear up according to rumors at the company. Bozhinov is the most awarded and the most fired chief at the Energetics. He was last fired last year by Roumen Ovcharov.
Source: Standart (13.02.2007)

Bulgargaz threatened the heat supply companies again. “As for now, we do not intend to stop the gas supply to the heat supply companies. However, Heat Supply-Sofia may force us to do so in case thye company keeps on accumulating huge debts after the end of the heating season”, said the procurator of Bulgargaz Georgi Gogov. Until yersterday the Sofia heta supply company had a debt of BGN 148 mln. He added that before stopping the supply, Bulgargaz will seek help from the principal of the company. Among the big debtors to Bulgargaz are the heat supply companies in Shoumen, Varna, Vratsa, Bourgas, Pleven and Plovdiv. Their debts are already reduced and none of them exceeds BGN 10 mln.
Source: Sega (14.03.2007)

Bulgargaz demanded the State Commission for Energy and Water Regulation to decrease by half a percent the price of the natural gas as of April 1. After this change the heat and hot water price may fall s of July 1, said the chair of the regulatory body Mr. Konstantin Shushulov to journalists. If the heat power price falls from July 1, we will search a way to keep it to this level for the entire oncoming heating season, Mr. Shushulov said. According to him this is possible if there is no sharp increase in the price of the natural gas by the end of the year. The regulatory expects the heat-supply companies to declare by April 1 eventual changes in the hear power price.
Source: Darik Radio (21.03.2007)

CEZ Group, the Czech utility company, is interested in the acquisition of energy companies owned by Bulgarian businessman Hristo Kovachki. CEZ CEO Martin Roman told Dnevnik that the company is indeed interested in the purchase of private energy assets in Bulgaria. Roman said there were no ongoing talks with Kovachki but confirmed that such have been held in the past. The top company official said he could not provide further details because he had not participated in the negotiations. Roman confirmed CEZ's interest in the acquisition of mining, heating and energy producing assets in South-eastern Europe and in the future privatisation of the Sofia district heating company. The Kovachki press office neither confirmed not denied the negotiations talk. Kovachki controls directly or indirectly the Cherno More, Chukurovo and Otkrit Vugledobiv coal mines, power producer Brikel, the Maritsa 3-Dimitrovgrad thermal power station and the Pleven, Vratsa and Burgas district heating companies. The 200MW Brikel, located in the Maritsa Iztok coal basin, plans to build replacement capacity in light of the fact that the integrated pollution control and prevention permit of the existing capacity expires in 2011. Germany's RWE and Italy's Enel also have plans for a new 600MW capacity in the Maritsa Iztok basin.
Source: Dnevnik (02.04.2007)

Experts of the European Commission check out the Bulgarian prosecution's work on significant cases in the last six months. Yesterday, it became clear that the word is about some 50 cases among them the draining of the Central Heating Company in Sofia, the E7.5 million SAPARD affair, the cases against Mityo Ochite and magistrates, etc. The inspection aims at greater transparency of the prosecutors' work on cases of great public importance. The work of the Interior Ministry will be checked out as well. The experts' conclusions will be included in the monitoring report of Brussels connected with Justice and Home Affairs Chapter expected in June.
Source: Standart (11.04.2007)

Sofia municipal councilors propose that all utility bills should be paid in package and at one desk. If one has unpaid central heating bill, he may have his electricity and water supply and phone cut off. This ingenious idea belongs to Prof. Atanas Tassev, Sofia Municipal Councilor from the quota of the National Movement Simeon II. The proposal is aimed to make the Sofia citizens with overdue central heating bills pay them promptly. "This approach has already yielded good results in Poland and Romania, Tasev explained. His idea will be discussed by the State Energy and Water Regulatory Commission. "The uncollected money from central heating bills of our subscribers amount to 218 million levs. Only thirty-three percent of those who use central heating in Sofia pay their bills regularly," said Liliya Mautner, Member of the Board of Directors of the Sofia Central Heating Company.
Source: Standart (24.04.2007)

Petko Milevski is the temporary CEO of Heat Supply-Sofia JSC. This was decided at a meeting of the Sofia Municipal Council unanimously. On April 10, the Copuncil released from duty the former CEO Nasko Mihov accusing him of inaction and incompetence. 13 days later Mihov filed his letter of resignation. Former directors at the company Georgi Rogachev and Valentin Dimitrov were arrested for company funds frauds.
Source: Novinar (04.05.2007)

Dalkia Bulgaria, the local unit of French utility Dalkia International, said it is interested in acquiring a 20 per cent stake in district heating company Toplofikacia-Sofia in a debt-for-equity scheme. Despite the lack of an official response to the letter the company said to this effect to the Bulgarian energy ministry in late 2006, Dalkia Bulgaria said the offer still stands. The French company is ready to settle a portion of Toplofikacia's debts that corresponds to a 20 per cent equity stake. The heating utility, co-owned by the government and the Sofia municipality (58 per cent), is some BGN 300 mln in the red. Czech utility company CEZ has also indicated it is interested in a debt-for-equity swap with Toplofikacia-Sofia. The government and the Sofia municipality have clashing ideas for the future development of the heating company which makes unlikely the privatisation of the company over the near-term. The Sofia municipality insists that the heating utility should be dismembered and then sold off in pieces while the energy ministry is pushing for the privatisation of 100 per cent of the capital in one go. Dalkia Bulgaria said it will definitely join a privatisation procedure for Toplofikacia-Sofia if such is launched. The French company, however, is not interested in a piecemeal privatisation and wants 100 per cent ownership. Dalkia said it has slated BGN 20 mln for investment over the next 5 years in the Varna district heating company which it acquired for EUR 6.8 mln in early 2007. The owner will invest in the rehabilitation of the transmission infrastructure and in the reduction of losses in transmission from the current level of 30-35 per cent to around 11 per cent. The company's developing a project for the adoption of a technology for biomass energy production at the Varna utility. The cost of the project is included in the 5-year investment program.
Source: Dnevnik (14.05.2007)

Dalkia Bulgaria is ready to acquire 20% of the heating utility in Sofia, Toplofikatsia, under a debt-for-equity scheme, the company said. However, this is only an idea for now, a senior official explained. France's Dalkia is a leading European provider of energy services. In early 2007 it bought the heating utility in Varna for EUR 6.8 million. The company plans to invest BGN 20 million in Varna over the next five years to reduce heating losses from 35% now to 11%.
Source: Pari (14.05.2007)

The Sofia city court Mon ordered the release from custody of Valentin Dimitrov, the former executive director of the Sofia district heating company who was arrested in Jul '06 on charges that included tax evasion and money-laundering. The court said there was not enough evidence against Dimitrov to warrant his continued detention. The four other suspects arrested in connection with the investigation into the decapitalisation of the utility company had already been set free.
Source: Dnevnik (22.05.2007)

The profit of Sofia's municipal companies doubled in 2006, reaching a total of BGN 4.268 million. The municipality is owner of 31 companies. The best performing enterprises last year were Chistota Iskar (BGN 1.680 million), Parkingi i Garazhi (BGN 1.325 million), Sofiyski Imoti (BGN 578,000) and Sofinvest (BGN 428,000). Negative financial results were posted by ViK, SKGT, Transenergoremont etc. The biggest loss-maker for the period was the heating utility, Toplofikatsia, which booked a BGN 10.5 million loss.
Source: Pari (29.05.2007)

Sofia Municipal Council approved the new business plan of Heat Supply-Sofia JSC, which plans an incease of the heat supply for residential customers by 4 percent. In case the State Commission for Energy and Water Regulation also approves the demanded hike by the heat supply company, the price will increase from BGN 60.25 to BGN 62.67 per MWh, VAT included, Despite this, according to the CEO – Petko Milevski, even this will not help the company on its way down. Based on his callculations, a 4 percent hike will lead to a loss of BGN 18 mln in 2007. Id the State Commission does not approve the business plan, the loss will be BGN 40 mln. In order to finish at ground zero, the hike must be 14 percent, said Milevski.
Source: mediapool.bg (15.06.2007)

The State Commission for Energy and Water Regulation will not allow the demanded price hike by heat supply companies in Plovdiv and Sofia. During the Energy Forum near Varna, both chairmen confirmed the demanded hikes of 4% in Sofia and 6% in Plovdiv.
Source: National television (15.06.2007)

The MWh in Sofia will be BGN 0.16 more expensive, while Bourgas citizens will pay BGN 5 more. The prices of the rest of the heat supply companies will be raised as well by various percentage. The customers of Sliven and Pleven heat supply companies, however, will pay lower prices. The average price hike in the country is 0.35%. This is planned for dicussion on June 26 by the State Commission State Commission for Energy and Water Regulation. The planned correction of the prices in Sofia is from 60.25 BGN/MWh to 60.41 BGN/MWh. In Plovdiv – from 66.91 BGN/MWh to 68.87 BGN/MWh. In Varna – from 71.29 BGN/MWh to 72.50 BGN/MWh. The most serious hike is in Bourgas – from 65.36 BGN/MWh to 70.38 BGN/MWh. The change in Rouse is significant as well – from 52.01 BGN/MWh to 56.64 BGN/MWh.
Source: mediapool.bg (22.06.2007)

The district heating companies in Vratsa, Veliko Tarnovo and Gabrovo were the only ones to finish 2006 in the black, says a report of the local power regulator. The utilities in Sliven, Ruse, Varna and Pernik were most efficient in collecting from non-paying customers while at the other end of the spectrum were their counterparts in Burgas, Kazanlak, Shumen and Pravets. The collective red ink of the heating utilities has risen 26.2% over 2005 to 290.5 mln levs with the Sofia heating utility as the most debt-ridden. The report said the current price regulation method that employs a rate of return and investment tally creates no incentives for the utilities to pare expenses. The companies are making bad investments while the regulator ensures they enjoy an ever rising rate of return. The regulator intends to adopt a new pricing method where the tariff hinges on service quality.
Source: Dnevnik (22.06.2007)

The Sofia district heating company is insisting that unless the nation's power regulator approves a 4% hike in customer tariffs as requested by the company and raises the cap on repair costs, heating and hot water supply in the capital may be discontinued, Petko Milevski, executive director of the utility, told a public discussion on the new heating tariffs due to take effect Aug 1. The regulator-proposed 0.25% price increase will leave the Sofia heating utility facing a year-end loss of 30 mln levs, said Milevski. The Pleven and Plovdiv heating utilities are also opposing the move for lower-than-requested repair cost caps.
Source: Dnevnik (27.06.2007)

Sofia City Court registers the following alterations for Heat Supply-Sofia JSC: removes Valentin Dimitrov Dimitrov as CEO; registers Georgi Stoyanov Rogachev as CEO; registers Valentin Dimitrov Dimitrov as deputy chairman of the Board of Directors; the company will be managed and represented by Georgi Stoyanov Rogachev.
Source: State Gazette (10.07.2007)

The Government should sell its share in Heat Supply Sofia because the company does not perform social functions, reported the head of the budget commission in the Parliament Mr. Petar Dimitrov that tomorrow will be proposed for election by the National Assembly for Minister of Economy and Energy. According to him, a company that does not perform social function should be put for privatization. Entering even a minor private capital in the management of Heat Supply will improve the management of the company, said Mr. Dimitrov.
Source: Novinar (17.07.2007)

French company Dalkia, which recently completed the take-over of the Varna district heating company, is in talks with local businessman Hristo Kovachki to buy from him the district heating companies in Burgas, Vratsa, Pleven and Sliven, Dnevnik learned from a source close to the negotiations. Dalkia Bulgaria declined to comment. The Kovachki office failed to respond to questions about the negotiations before Dnevnik went to press. Czech utility company CEZ is also interested in the Kovachki companies. CEZ Bulgaria CEO Martin Roman recently told Dnevnik that talks have been held on the acquisition of some assets controlled by Kovachki. The Vratsa district heating company went private through the local stock exchange. It was acquired by the Kamibo company for BGN 790,000. Kovachki was named as a Kamibo consultant. No data has been supplied to the power regulator on the investment that has been ploughed in the three utilities which collectively service 100,000 households. A successful deal would strengthen Dalkia's positions on the Bulgaria power market, putting it in the same bracket as Austria's EVN which recently bought the Plovdiv heating company. Dalkia is also eyeing a 20 per cent stake in the ailing Sofia district heating company under a proposed debt-for-equity scheme. The only state-owned district heating companies remaining are those in Sofia, Shumen and Pernik.
Source: Dnevnik (20.07.2007)

The Heat Supply Accountants suggested yesterday to be able to prepare equalizing bills for heat supply at each time and not only at the end of the heating season. They participated in the meeting with State Commission for Energy and Water Regulation, at which the general conditions between companies and heat supplies in Sofia, Vratsa, Sliven and Pleven were discussed. The idea for the so called rolling principle means that the dates for accounting different reasidential blocks of flats will differ even in seasons.
Source: 24 chasa (25.07.2007)

Customers of Heat Supply-Sofia JSC expect the company to return oney on the heat supply bills. In their opinion the they paid high bills during the warm winter because they were made based on 2006. Heat Supply-Sofia JSC, however, claims that the bills are realistic and very few funds will be returned. The winter was warm but the prices have risen. Even if the radiators are not turned on, a lot of energy goes to the building installation. Most of the heat supply accountants will be ready with the equalizing bills in the middle of August.
Source: Standart (25.07.2007)

The citizens and guests of Bulgaria's capital city of Sofia will be granted a short number (311), at which they will report all hardships that befall them in the city. The line will be codenamed 311, following the example of New York and Washington D. C. There, the green line was opened after 9/11 to take some of the non-emergency calls to 911. Sofia's project is also for a non-emergency call center and its phone number will be further negotiated with the Bulgarian Telecommunications Company. For now, it is certain that the number will be short and the calls to the center will be free of charge. The call center will be hosted in the building of the Sofia Municipality. The calls received by the operators will be forwarded by the duly municipal services, which can offer assistance the caller. "Also, the system will be able to determine the caller's location with a great accuracy - within a diameter of ten meters," said project developer Nikola Lazarov. The information received at the call center will be stored on a mirror CD. "The system will not only help the citizens of Sofia give signals to the municipal services, but it will also give them a chance to tell the operators if they have received proper assistance," Lazarov said further. The idea of the project belongs to Sofia Mayor Boyko Borissov and it will cost a little over half a million levs (1euro=1.95levs). The project may be implemented in about four months after the Sofia Municipal Council passes the mayor's proposal.
Source: Standart (26.07.2007)

The private company New Energy Vision may be given today without auction or competition the right to construct a new TPP on a land of Heat Supply-Sofia JSC. The area is of 16,749 sq.m – a part of the platform of Heating Plant Zemliane. The project is included as an item in the agenda of the general meeting of the shareholders of the Sofia-based heating unit appointed for 12 AM today. The owners of the capital – Sofia Municipality and the Ministry of Economy and Energy, have opposite visions about the new facility.
Source: Trud (27.07.2007)

The city of Sofia has chosen a public auction format for the divestiture of its 56% stake in the Municipal Insurance Company (MIC). The municipal council will set in September the minimum sale price for the stake which has been valued by an independent appraiser at 6.3 mln levs. The sale procedure is expected to be concluded in October ahead of the local elections. The municipal stake is made of the 9.57% held by the city itself, the 46.41% controlled by municipal company Sofiiski Imoti and the 9.57% of municipal company Parkings and Garages. The municipal stake will not be broken up for the purposes of the privatisation procedure. Last year, local businessman Hristo Kovachki accumulated a 20% stake in MIC after several equity transactions. Another local insurer, Lev Ins, had also notified to the municipality its interest in the company. Insurer Armeec has reportedly also inquired about the possible sell-off. Potential buyers would pursue the insurer, one of the nation's smallest with a 2006 premium income of 7.4 mln levs, mainly for the sake of its licence and steady position.
Source: Dnevnik (03.08.2007)

Customers of Heat Supply-Sofia JSC currently owe BGN 190 mln to the company and the collection rate is 38 percent, said CEO Petko Milevski. Meanwhile the heat supply company owes BGN 150 mln to Bulgargaz for delivered fuel. The company commented that the low collection rate is because the equalizing bills have not yet been received. According to Milevski most of those bills will be received in September.
Source: BTA (03.08.2007)

Alma Tour, one of Bulgaria’s biggest tour operators, has bought the Tamplier holiday homes complex in local ski resort Bansko. The deal was confirmed by Alma Tour executive director Lyubomir Pankovski and former Tamplier owner Ilko Yotsev. The four-star Tamplier was among the first condo complexes to be built in Bansko. The BGN 12 mln facility offers 50 apartments on four floors. The list of amenities of the 12,000 sq m complex includes swimming pool, gym, spa center, restaurant, bar and underground parking. The buyer said the complex will continue to operate as a hotel with further apartments to be added. The tour operator has already purchased 0.5 ha of land for the expansion of the complex. An aquapark will also be built. Alma Tour also owns the Atlas hotel in local sea resort Golden Sands. The company invested BGN 12 mln in the 580-room hotel which opened in 2003.
Source: Dnevnik (07.08.2007)

The local Energoremont Holding said it will seek shareholder approval to issue debt of up to BGN 50 mln or the equivalent in another currency. The general meeting will vote on the proposal on Sept 17. The holding company did not respond what projects that will be financed with the debt issuance before Dnevnik went to print on Monday. Energoremont Holding posted a profit of BGN 571,000 in the first half of '07, up 33 per cent over the year-ago period. Expenses rose 98 per cent to BGN 12.118 mln while revenues added 82 per cent to BGN 12.689 mln in H1.
Source: Dnevnik (07.08.2007)

The board of managers of the Sofia heating utility Toplofikatsia presented Tuesday their investment and repairs program for 2007 at a press conference. Toplofikatsia will replace 20 kilometres of sewers and water pipelines and also 1963 distribution stations. It is expected that the replacement of the pipes will decrease the losses by 45%. The investment program costs BGN 49 M. The World Bank and the European Bank for Reconstruction and Development has granted BGN 33 M of the sum.
Source: Darik Radio (15.08.2007)

Struggling district heating company Toplofikacia Sofia has asked state-owned gas supplier Bulgargaz to agree to the rescheduling of some 150 mln levs in outstanding gas bills, said Bulgargaz executive director Dimitar Gogov. The gas distributor said it is amenable to a debt-for-equity payment scheme. Bulgargaz is owed 203 mln levs in unpaid gas bills by the domestic heating utilities carried over from the '06-'07 heating season.
Source: Dnevnik (20.08.2007)

Tycoon adds Bobov Dol Mines to cart Energy tycoon Hristo Kovachki has taken control over the Bobov Dol Mines a few days ago. Kovachki has acquired the company to which the mining complex was rented out, the Pari daily learned. Thus one of the largest Bulgarian investors in the energy sector has added another asset to his empire. Kovachki controls five coal mines in the Pernik region, as well as the Cherno More Mine. He will not be satisfied with the present situation and will most likely try to secure a concession contract for the Bobov Dol Mines, sources familiar with the situation say. State owned Bobov Dol Mines was rented out to private company Oranovo in 2006 with the permission of former economy and energy minister Rumen Ovcharov. The term of the contract is for five years. The decision was surprising to the companies in the sector. The move was prompted by the poor financial condition of Bobov Dol Mines and the inability of its managerial team to come up with a rehabilitation programme, the ministry of economy and energy said. A year later Bobov Dol Mines continues to be in critical condition. Nikolay Yanev was appointed manager of the company a few days ago. Angel Angel, executive director of Cherno More Mine, will be consulting the company. Bobov Dol Mines has not been restructured since the communist era. There are too many administrative employees and inefficient operations, Angelov said. The situation, however, will change for the better over the next month or two, Angelov added. Kovachki will try to acquire Bob Dol thermal power plant (TPP) after the deal with Greek candidate PPC failed, specialists say. The TPP operates on coals from Kovachki's mines. Kovachki owns the heating utility in Vratsa and holds stakes in several hydro power plants. He also owns the briquette company in Galabovo and has a stake in Maritsa Iztok 3 and Atomenergoremont. The tycoon is interested in the Sofia heating utility (Toplofikatsia), as well as in the setting up of a new TPP on the territory of Maritsa Iztok Mines.
Source: Pari (20.08.2007)

Sofia City Court registers the following alterations for Heat Supply-Sofia JSC: removes Ilko Georgiev Yotsev, Plamern Borisov Vassilev and Valentin Dimitrov Dimitrov as members of he Board of Directors; registers Boris Yanakiev Todorov, Dobrinka Yotova Mihaylova and Valentin Goryanov Ivanov as members of he Board of Directors; registers Georgi Dimitrov Nenkov as chairman of the Board of Directors and Valentin Goryanov Ivanov as his deputy.
Source: State Gazette (24.08.2007)

The state-owned stake in Heat Supply-Sofia JSC might be sold. Experts from the Ministry of Economy and the minister Petar Dimitrov himself have met representatives of the World Bank and the European Bank for Reconstruction and Development, which are the creditors of the Sofia-based company on the state-guaranteed loans. We have been calculating what is to be lost and what is to be won, if we sell the shares, said sources of ministry. The state holds 42 percent in Bulgarian’s biggest heat supply company.
Source: Standart (11.09.2007)

The Ministry of Economy and Energy is to wait the formarion of the new Sofia Municipal Council after the local authority elections in October, to make a resolution about the future of the Sofia-based Heat Supply JSC, minister Petar Dimitrov said. The institution finds it fit the entire company to go private. If, however, the Municipal Council decides something else, then the State shall review its position about the state-owned stake in Heat Supply JSC - Sofia. According to Dimitrov, currently a couple of companies have already shown interest in company’s purchase, as on of them is Dalkia – the owner of Heat Supply-Rousse SPJSC.
Source: Darik Radio (12.09.2007)

Plans for the sale of Sofia's heating utility company by the end of the year are about to collapse over a consultancy fee, Darik radio reported. The company, which has been in the news for a year already after it was found drained to the brink of bankruptcy, was to be privatised by the end of 2007 under an agreement between the municipality of the capital and the energy ministry. "It is not yet decided who will pay the fee to the consultant of the deal," Nikolay Zhelev from the municipal council told the radio. Toplofikatsia-Sofia provides heating to about 400,000 households in the capital Sofia. While the average monthly wage in the capital is set at about EUR 300, a household's monthly heating bill in the winter normally tops EUR 150, statistics show. The former head of Sofia's heating utility company, Valentin Dimitrov, was arrested last year after an audit of the Toplofikatsiya Sofia heating utility found major irregularities in the company books, while the firm itself had to file for bankruptcy. Dimitrov's case is one of the highest-profile corruption investigations against a state employee to make it to court.
Source: Darik Radio (19.09.2007)

Bulgaria's state-owned gas firm Bulgargaz and the Toplofikatsiya heating utility in capital Sofia agreed on Friday to reschedule the payment of the debts owed by the heating firm. Toplofikatsiya owes Bulgargaz BGN 150 M for deliveries of gas, the main source of energy it uses. It will pay back the debt over the next six years. The managing boards of both firms have already approved the deal. Toplofikatsiya was found to be on the verge of bankruptcy last year after an impromptu audit, and its chief executive Valentin Dimitrov was arrested. He has since been indicted on charges of currency fraud and is being investigated for alleged money laundering and embezzlement.
Source: Darik Radio (01.10.2007)

Minister: Bulgaria to Forgo Bulgargaz Dividend to Keep Prices Low Bulgaria's cabinet could forgo its dividend from state-owned gas company Bulgargaz in order to mitigate the gas price hike, economy and energy minister Petar Dimitrov said on Friday. Bulgargaz wants prices to rise by 11% next month, but utility prices regulator DKEVR said earlier this week that it would not authorise a hike of more than 9%. DKEVR is expected to rule on the issue when it next meets on October 1. The economy ministry is currently calculating the impact of the hikes, as well as how forgoing the dividends would impact the gas prices, Dimitrov said. Bulgargaz has also offered to sell gas at lower prices to its biggest customers, like the Kremikovtsi steel mill and the Sofia heating utility Toplofikatsiya.
Source: Darik Radio (01.10.2007)

State-run gas distributor Bulgargaz and beleaguered district heating company Toplofikacia Sofia signed last week an agreement rescheduling the payment of 150 mln levs in unpaid gas bills through 2013. The deal, which will have to be reviewed by the nation's anti-trust authority to make sure it does not constitute unacceptable state aid, was made possible after Toplofikacia Sofia settled a fraction of its outstanding obligations by paying around 7 mln levs to the gas supplier. This is the second time that the two companies have hammered out an extended debt payment schedule. In 2003, Toplofikacia Sofia was allowed to spread the payment of some 60 mln levs to Bulgargaz over a five-year period. At the time, the government became a shareholder in the heating utility, converting the Bulgargaz debt into a 42% equity stake.
Source: Dnevnik (01.10.2007)

Bulgaria's utilities regulator DKEVR approved on Monday a 9,2% increase in the price of natural gas to BGN 349 per 1000 cubic metres, nearly 2,6 percentage points less than demanded by state-owned firm Bulgargaz. Although natural gas is little used in Bulgarian households, it is one of the main fuels used by Bulgarian thermal power plants and heating utilities. With weather forecasts predicting a cold winter and consumption expected to rise strongly compared to last year, which saw a much milder winter than usual, Bulgaria's government has been scrambling for solutions to minimise the impact of the hike on end users. Bulgargaz is allowed to sell gas at a lower price, but that would mean cutting into its profit margins and would need a cabinet decision in order to do so. Bulgaria's economy and energy minister Petar Dimitrov has said the ministry could forgo its dividend to temper the price hike, but needed to analyse how the measure would impact the prices first.
Source: Darik Radio (02.10.2007)

After more than a year of negotiations between the Sofia Municipality and the Council of Ministers about the start-off of the privatization procedure for Heat Supply-Sofia JSC, the two institutions faced the ludicrous situation of reaching no agreement about which one of them shall provide the procedure consultant’s fee. Sources from the Sofia Municipal Council announced Tuesday that yet there is no consultant elected for the privatization of Heat Supply, since there were no funds to pay him. About EUR 1.5 mln shall be paid to the consultancy agency that will advise the municipality and the state in how to restructure and further sell-off the company.
Source: mediapool.bg (03.10.2007)

New Price-Tsunami to Hit Bulgaria A new price-tsunami will sweep through the pocket of the Bulgarian. Starting in 2008, electricity and natural gas prices will increase by 10% in Bulgaria, the Chairman of the State Energy Regulatory Commission (SERC) Mr. Konstantin Shushulov stated before the MPs from the Energy Commission with Bulgaria's Parliament. "The blue fuel, which raised its price in October by 9.21%, is to become more expensive by another 10% in January, 2008," Mr. Shushulov said further. "The reason for the increase is the growing prices of the alternative fuels on the Mediterranean markets," he pointed out. "Between 7 and 10% will be the hike in electricity price next year. However, it will be introduced no sooner than July because the regulatory period is one year," said Valentin Mirchev, Deputy Chairman with the (SERC). Expensive fuels are again the cause for the electricity price-hike. Shushulov also pointed out that last year's price of imported coal had went up by 20%, and this was exactly the type of coal used in most thermal power plants in Bulgaria.
Source: Standart (04.10.2007)

Heat Supply-Sofia JSC has collected BGN 2.3 mln from the interet-free period announced on September 25, said Stefan Donchev, External Relations Manager at the company. About 80 thous customers may benefit from the offer. Over 3 thous signed contratcs and 50 thous paid bills were registered by Heat Supply-Sofia on the 20-th day of the period. This is nearly 2% of the total debts to the company, which is BGN 190 mln. Donchev added that he expects most of the customers to take advantage of the offer in the last days.
Source: Darik Radio (15.10.2007)

Bulgaria will cancel exports of electricity at the end of November, to ensure it has enough to cover domestic consumption in the winter, deputy economy minister Yordan Dimov said. The reason is that we are entering the first winter when only 4 nuke reactors will operate and this could cause shortage of power supply. Maritza Iztok complex will have the key role in the electricity production this year, Dimitrov added.
Source: Novinar (19.10.2007)

Foreign companies, including two German, two French, Czech, and others, are interested in Heat Supply-Sofia JSC, told the chair of the Sofia Municipal Council Vladimir Kisiov. He said also that yet there is no consultant elected yet for the privatization of the heat supply company, and this is why the agreement between the municipality and the Ministry of economy and energy about the company’s sell-off by the end of the year will not be performed in time.
Source: Darik Radio (19.10.2007)

Gazprom secretly sneakes into Heat Supply-Sofia JSC. The Russian gas giant declared financial support to New Energy Vision JSC. A year ago the company was selected with no auction and absolute majority by Sofia Municipality to produce electricity at the installation of TPP Zemlen. The financial aid is a backdoor attempt of the gas-supply company to enter the biggest heat supply company in Bulgaria.
Source: Standart (26.10.2007)

Heat Supply-Sofia JSC signed contracts with six companies for share distribution companies, which cover about 80% of the served customers, said CEO Petko Milevski. He refused to call them as some of them were yet in negotiations. Tehem SPLTD, East-European Speditor-Transport Agency, TermoComplect LTD, Direct LTD and Nelbo SPJSC have already signed agreements, while Brunata Bulgaria LTD and Elveko are still negotiating. Currently 11 companies serve the customers.
Source: Dnevnik (08.11.2007)

Bulgargaz may stop the reduce and even stop the gas supply for some heat supply companies, which delay their payments. The state-owned company said that this does not concern Heat Supply-Sofia JSC as it conscientiously pais its obligations. Not long ago the two companies signed an agreement for the space out of a BGN 150 mln debt.
Source: Pari (09.11.2007)

The Czech Republic is interested in the development of infrastructural and energy projects in the Sofia municipality. This became clear after the meeting of the Sofia mayor Mr. Boiko Borissov and the Czech Prime Minister Mirek Topolanek. Borissov said that they had a talk about the interest shown by the Czechs in the privatization of Heat Supply-Sofia, the privatization of the cogeneration stations, the construction of tram lines, and in projects for development of the Sofia street lighting.
Source: Darik Radio (12.11.2007)

Heat Supply-Sofia JSC demonstrated pressure on some share distribution companies and placed its new management formules over their operations. The state-municipal-owned company will collect the taxes for measurement devices service and will then trandfer them to the heat supply accountants. The total sum collected by this is BGN 5 mln.
Source: mediapool.bg (15.11.2007)

The management of Electricite de France has stated to the Ministers of Economy and Energy Petar Dimitrov that it was still interested in the purchase and sale of electricity produced by NPP Belene. The company would also like to participate in the privatization of Heat Supply Sofia JSC by becoming a majority owner through its subsidiary Dalkia International, the sole proprietor of Dalkia-Bulgaria SPJSC. I hope that the privatization would be implemented in short time, highlighted Petar Dimitrov at his visit in Rome on the occasion of the 20th World Energy Congress.
Source: Darik Radio (15.11.2007)

Bulgarian companies Brikel SPJSC and Media Sviat have bought three facilities in Krushevats so far – Trayal Corporation, Toplana and Pobeda, said Serbian Blitz. Although the two companies are not officially connected, unofficially they and other companies that bought Serbian Kovin mine, Nevena and Serbianka are managed by the Bulgarian businessman Hristo Kovachki, one of the most powerful men in Bulgaria, added Blitz quoted by Focus Agency. Kovachki is most powerful in the field of Energetics, he owns shop chains and a lot of real estate, and he recently entered politics, reminds the media. Brikel is mentioned as the potential buyer of agriculture plant Delishes, that is prepared for the third to be sold in an auction. The previous two attempts were unsuccessful.
Source: Monitor (19.11.2007)

The price of the central heating in Sofia will become 20 per cent higher since New Year, if The State Commission for energy and Water Regulation accepts the required by Bulgargaz increase of the blue fuel with more than 33 per cent. The gas share in the heating is 70-80 per cent in the different heat-and-power supply, branch experts comment. This means that 1 megawatt per hour in Sofia will cost more than BGN 72 without VAT included compared to BGN 60.25 now. If the gas price increases by 20 per cent, the heating will register an increase of 14 per cent, if it increases by 10 per cent, the equivalent for the heating will be 7 per cent, experts estimate. They hope from the branch that the regulator will not change the price of the heat energy in the winter, though. They expect an increase in the price of the electricity, manufactured by the heat-and-power supply, which NEK is obliged to buy. The State Commission for energy and Water Regulation is worried by the demand for a drastic increase of the price of the natural gas, they say.
Source: 24 chasa (19.11.2007)

Two Heat Supplies demanded rise in the price of the heating Five of the largest heat supply companies in the country – of Sofia, Plovdiv, Varna, Burgas and Pernik, demanded rise in the prices from the State Commission for Energy and Water Regulation. The heat supplies of Sofia and Varna want a correction of the prices of the heating, and all five insist on the Commission to increase the prices, on which they sell the produced electricity to the National Electricity Company. The corrections for the heating are minimal – they want a rise from BGN 72 to 75 for one megawatt per hour in Varna, and according to the director of the heat supply in Sofia the company demand 8% rising.
Source: Sega (11.12.2007)

Sofia Municipality does not pay its heat supply bills to Heat Supply-Sofia JSC, which is owned by the Municipality. The debt for 2007 is BGN 780 thous and was accumulated by municipal companies and mayor’s administration, announced the CEO of the company Petko Milevski. The minority owner – the State, owes BGN 1.7 mln. The total debt to Heat Supply-Sofia is BGN 169 mln.
Source: mediapool.bg (11.12.2007)

The losses of Heat Supply-Sofia JSC will reach BGN 22 mln, announced CEO Petko Milevski. The company has an investment program that plans a loss of BGN 28 mln for 2007. The loss, however, will be lower as some thermal power plants started using natural gas in stead of fuel oil.
Source: Pari (11.12.2007)

Four construction companies have declared interest in buying heat from Heat Supply-Sofia JSC and deliver it to end customers, said Stefan Donchev, head of External relations in the heat supply company, during a State Commission for Energy and Water Regulation meeting. The ofers will be discussed on 7 January 2008 when the conditions for the future suppliers will be defined. According to the alterations in the Energy law, the candidates may choose between signing deals with heat supply accountants so that they register the used heat from the end customers, or do it themselves.
Source: Novinar (19.12.2007)

Unpaid natural gas worth millions of BGN is the reason for the warning periods for stop of supply at the end of the year, which Bulgargaz has announced for some of the heat supply companies, said Valentin Terzyiski, spokesperson of the innitiative board of the heat supply managements. Heat Supply-Vratsa SPJSC owes BGN 3.8 mln and a warning shut down date on December 21, 2007. Heat Supply- Burgas SPJSC owes BGN 10 mln and has a warning shut down date on December 27, 2007. Both companies are owned by the energy boss of Bulgaria Hristo Kovachki. . Heat Supply – Pleven SPJSC has a debt of BGn 13 mln and a warning shut down date on December 21, 2007. Sofia heat supply company owes BGN 140 mln has no warning shut down date.
Source: Sega (20.12.2007)