Some 50 Sofia-based companies with unpaid hot water bills to Toplofikatsiya Sofia, the city's heating utility, will have to go dry from September 1 in the wake of a tougher stance that state-controlled gas distributor Bulgargaz is taking against utilities that have not paid for their gas supplies.

In a statement to the media, Bulgargaz said on August 28 that, starting September 1, it will power down gas supplies to the heating utilities in Sofia, Bourgas, Vratsa and Pleven. The four heating utilities owe state-run Bulgargaz more than 235 million leva for past gas supplies.

In April, Bulgargaz reduces gas supplies to the heating utility in Shoumen. In July, the gas supplier warned town halls and utilities that they would face sanctions unless they resume payments on outstanding gas bills.

The last-ditch measure is needed because of the substantial size of unpaid bills and the depletion of Bulgargaz' financial reserves, the company said.

The Sofia heating utility alone owes Bulgargaz 116 million leva on top of the 150 million whose payment was rescheduled last year. The Sofia utility's response was to announce it was cutting off the hot water supply of non-paying industrial customers.

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