Sofia Prepares for Euro: Local Taxes and Fees to Be Recalculated
Sofia Municipality is setting up a dedicated working group tasked with converting all local taxes, fees, and service prices from Bulgarian leva to euros
Municipal councilors from the "We Continue the Change-Democratic Bulgaria-Spasi Sofia" (WCC-DB-SS) coalition are raising concerns over the dire situation at Toplofikatsiya-Sofia (District Heating Sofia), the capital's heating company. They have called for a hearing with the company's management to address the alarming technical and financial state of the enterprise. Councilor Boris Bonev emphasized the urgency of ensuring uninterrupted hot water and heating for Sofia residents during the Christmas holidays, warning that these services are at risk.
Reports from employees reveal a troubling picture of the company’s operations. Facilities are reportedly nonfunctional, staffing is inadequate, and even basic work attire is unavailable. Bonev highlighted that daily accidents further compound the company’s issues, which he attributes to years of mismanagement under GERB. He accused the new GERB-appointed leadership of worsening the situation by installing inexperienced personnel, whom he claims are contributing to the company's collapse.
The financial state of Toplofikatsiya-Sofia is equally concerning. The company’s losses for 2023 amount to 1.3 billion leva, with debts projected to exceed 2 billion leva by year’s end. Dragomir Ivanov, a municipal advisor, described the situation as “apocalyptic,” noting that the company is effectively bankrupt. He cited losses of 15 million leva per month due to the Sofia thermal power plant's inability to operate and projected debts of 1.2 billion leva to Bulgargaz by the end of the heating season. Despite the potential to generate significant revenue from electricity production, the company has failed to invest in new capacities, citing the closure of its incinerator as a limiting factor.
Repair expenses for the company amounted to only 6.7 million leva last year, further highlighting the lack of adequate investment in infrastructure. Councilors from WCC-DB-SS have demanded accountability from GERB for neglecting the company’s issues over the years. They argue that the state’s intervention is the only viable solution to address the ongoing crisis and stabilize the capital’s heating system.
An extraordinary session of the Sofia Municipal Council is scheduled for next Wednesday to discuss these issues. The WCC-DB-SS coalition plans to seek clarity on the company's debt situation and demand concrete solutions to prevent further deterioration of services.
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