Bulgaria's Toplofikatsiya Sofia faces record loss, KRIБ urges concession

The Confederation of Employers and Industrialists in Bulgaria (KRIБ) has called on the Sofia Municipal Council to begin a concession process for the city’s heating utility, Toplofikatsiya Sofia EAD. The appeal follows the company’s 2025 financial results, which showed a record loss of 426 million lev (about €220 million), roughly three times the loss recorded in 2024.

KRIБ warns that the loss threatens the utility’s financial autonomy and liquidity, and could have a domino effect on the stability of Bulgaria’s entire energy system and on state finances. The firm supplies heat to a large number of commercial, industrial and public facilities, employs around 2,200 staff, and has seen electricity sales fall by 24% while costs rise due to inflation, limited optimisation and insufficient digitalisation. Aging infrastructure and high technical losses increase the risk of outages and further economic damage.

The employer confederation urges the council to start preparations for a concession without delay, arguing that this step is essential to safeguard energy security, protect the business climate and prevent further strain on the national budget.