June 12, 2024
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HomeUncategorizedBulgaria: Acquisition of Sofia Heating Utility's Debts to Bulgargaz, Bulgarian Energy Holding...

Bulgaria: Acquisition of Sofia Heating Utility’s Debts to Bulgargaz, Bulgarian Energy Holding suspended

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Bulgarian caretaker government has annulled a decree and decisions with which the State, acting through the Energy Minister, was to acquire debts of Toplofikatsia Sofia to Bulgargaz and Bulgarian Energy Holding (BEH) of up to BGN 1.6 billion (around 800.000 euros). Decision was adopted in absentia at the proposal of caretaker Energy Minister Vladimir Malinov, the Government Information Service reported. 

The annulled documents, adopted by the Nikolay Denkov government on March 27, made possible the allocation of resources from the Energy Ministry’s 2024 budget and tasked the Minister to hold negotiations and acquire Sofia heating utility’s debts on behalf of the State.

Press release of the Government Information Service reads that by the Public Finances Act, the Energy Minister is responsible for an assessment of whether the allocation of resources from the Ministry’s budget to non-budget organizations complies with the law in the field of State aid. In the present case, the Minister has to suspend the acquisition of Toplofikatsia Sofia’s debts, because the European Commission has not been informed of the matter and, therefore, is yet to determine whether the acquisition complies with EU law. There is a real possibility of the Commission determining the acquisition constitutes State aid, the press release reads.

State aid is prohibited under Article 107 of the Treaty on the Functioning of the European Union, unless exceptionally justified.

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