October 5 (SeeNews) - Bulgarian municipal heating utility Toplofikacia Sofia has repaid over 543 million levs ($276.1 million/277.6 million euro) of its debt to public gas supplier Bulgargaz between January 1 and September 28, leaving it over 349 million levs in arrears, the country's energy regulator said.
Thanks to investments in generating facilities with a total estimated capacity of 580 MW, Toplofikacia Sofia will increase its power-to-thermal energy ratio to 85.17% from 18.28%, the Energy and Water Regulatory Commission (EWRC) said in a statement on Tuesday.
The investment plan of the heating utility serving the Bulgarian capital also foresees an upgrade of Sofia's heat transmission network to guarantee the security of supply.
In May 2021, Sofia municipality signed an agreement with the US Trade and Development Agency, which unlocked a grant of close to $920,000 (925,155 euro) to go towards the Bulgarian company's plan for recovery, modernisation and recapitalisation.
Under that plan, the company intends to install steam and gas cogeneration facilities at two of its thermal power plants in Sofia. It is also planning the construction of a combined heat and power (CHP) plant, which will use refuse-derived fuel (RDF) as part of Sofia's waste management strategy.
As instructed earlier, Toplofikacia Sofia submitted three possible scenarios of repaying the remainder of its debt to Bulgargaz by June 2023, the EWRC also said.
The scenarios take into account the likelihood of the heating company receiving no compensations for the cost of purchasing natural gas, or else being compensated for 50% or 100% of the cost. The latter option, which would reduce Toplofikacia Sofia's debt to Bulgargaz to some 90 million levs, is the preferred option for the company, according to the statement.
(1 euro = 1.95583 levs)
($ = 1.0054865 euro)