Bulgaria Pays High Price for Botas Gas Deal, Bulgargaz Financial Struggles Intensify - Energy Minister

Energy Minister Zhecho Stankov sharply criticized the contract Bulgaria signed with the Turkish gas company Botas, calling it a major burden that has brought Bulgargaz to its knees, BGNES reported. According to Stankov, Bulgaria is currently paying 1.05 million leva daily for gas capacity that is largely unused, with this amount expected to rise to 1.1 million leva next year and 1.2 million the following year. So far, nearly 600 million leva have been spent under this agreement, while actual usage remains around 40,000 units.

Stankov expressed confidence that investigations by the National Security Agency and the Prosecutor’s Office, which have received a report on the Botash contract, will clarify who is responsible for signing what he described as a disadvantageous deal for Bulgaria.

Regarding Bulgargaz, the minister insisted the company must be preserved despite its difficult financial standing. Without directly mentioning bankruptcy, Stankov acknowledged the company’s poor financial health but emphasized that the current contract with Botash is the main cause of its struggles. He accused some members of the caretaker government of damaging national interests, whether intentionally or not.

Stankov also raised concerns about Sofia District Heating Company, which owes more than 1 billion leva to the Bulgarian Energy Holding (BEH). After a meeting with Sofia Mayor Vasil Terziev, the minister stated that the city’s administration and its municipal corporation are responsible for managing the heating company and must take appropriate measures. He reassured the public that gas supply to the district heating company will continue uninterrupted.

On the issue of heating costs, Stankov promised that prices will not be allowed to increase, aiming to protect consumers from further financial strain.

He also reflected on Bulgaria’s role in the regional energy crisis, saying that if the country were not part of the Balkans and Eastern Europe, the energy collapse experienced in North Macedonia and Serbia would have unfolded similarly to the severe crises seen in Spain and Portugal. Bulgaria’s assistance to Skopje and Belgrade during this period was crucial, he added.

The minister also confirmed that the existing day and night electricity tariffs for households will remain unchanged. He announced that the planned liberalization of electricity prices for residential consumers has been shelved to prevent a sharp rise in bills. Stankov warned that exposing households to free-market electricity rates now could lead to monthly bills increasing fivefold. By delaying liberalization, he said, the government is also easing inflationary pressures in the economy.

Source: BGNES