ENERGO-PRO and Plumbing Shumen signed an agreement on rescheduling the obligations of the water supply company
The agreement was signed with the important assistance of the Minister of Regional Development, Mrs. Desislava Terzieva and the Regional Governor of Shumen, Mr. Ventsislav Venkov
Today, 24.09.2013, at a joint meeting between the regional governor of Shumen, Mr. Ventsislav Venkov, the manager of Shumen Plumbing, Eng. Svetlozar Damyanov and Mr. Stefan Abadzhiev, manager of ENERGO-PRO, in the presence of representatives of the media, the public and civil organizations, an agreement was signed on rescheduling the debt for consumed electricity of the water supply company.
The conclusion of the agreement proposed by the Shumen Water Supply System for repayment of the accumulated liabilities came after the debt of the Shumen Water Supply System for consumed electricity was discussed yesterday at a meeting between the Minister of Regional Development, Mrs. Desislava Terzieva, the regional governor of Shumen, Mr. Ventsislav Venkov, the manager of Shumen Plumbing Men, Eng. Svetlozar Damyanov and Mrs. Boryana Peneva — member of the Management Board of ENERGO-PRO Sales. During the meeting held yesterday, the manager of Shumen Plumbing presented to Minister Terzieva and Mr. Venkov a successive plan for short-term recovery of the financial situation of the water supply company. Among the measures envisaged are an increase in the collection of all new liabilities of the customers of Shumen Water Supply System, repayment of all amounts on old receivables of the company, as well as a number of technical measures to improve the water supply network and reduce losses. At the meeting, Minister Terzieva got acquainted with the current financial status of the plumbing company and the measures adopted since the new manager took office, and expressed support for the actions planned by Shumen Water Supply. Overdue payments for consumed electricity of Shumen water supply to ENERGO-PRO amount to over BGN 1.1 million.
“For us, the commitment shown by the Minister of Regional Development in solving the issue of the increasing debt of the Shumen Water Supply System is very important and gives us the necessary confidence that the risk we take with the conclusion of the rescheduling agreement is justified and measured. Based on the support expressed by the Ministry during the meeting held yesterday and the signal given about the will of the state for the recovery and stabilization of the water supply company in Shumen, we have decided to adopt the proposed debt rescheduling plan”, said the manager of ENERGO-PRO.
According to the repayment agreement signed today, ENERGO-PRO accepts a deferral for ten months of the accumulated debt of Shumen Water Supply Company, which is a compromise with the established practice of the electricity distribution company to reschedule debts of a significant amount for a period of more than six months. In parallel with the overdue obligations, the water supply company will have to pay its current bills for consumed electricity and within the agreed period, subject to the conditions of the rescheduling plan, it will be able to fully repay all late payments to ENERGO-PRO.
“We fully understand the problems faced by the water supply company in the city of Shumen in recent years. Given the public importance of the activity of water supply for Shumen and the region, we agreed to be as cooperative as possible and to provide assistance in solving the problem of the accumulated debt to our company. Presented by Eng. Damyanov's plan for the financial recovery of the water supply company gives us additional confidence that Shumen Water Supply System will cope with the difficulties it is currently facing and will strictly respect the commitment made in the agreement plan. It should be noted that rescheduling for a period of 10 months for us is a serious compromise that we are making in view of the financial capabilities of the water supply company at the moment,” Mr. Abadzhiev noted.
With the rescheduling of the debt of a large debtor, such as Shumen Water Supply, the financial flow in ENERGO-PRO is disrupted. A financial deficit is formed, which ENERGO-PRO Sales must fill in order not to delay payments to NEC and electricity producers. The electricity company is the largest creditor of the water company, but since it is not a credit institution, it does not receive collateral for late payments. Therefore, it is necessary to ensure that when the debt is rescheduled, the water company will be able to pay the contributions on time.
“We are convinced that the signing of the agreement proposed by the Water Works Shumen on deferment of obligations will lead to a successful exit from the situation with the accumulated debt and the joint efforts of the management of the two companies will lead to the most favorable outcome. Thus, our company will not face the choice to cut off the electricity supply to the water supply and leave the people in the area without water or to be unable to pay with the NEC and the electricity producers, and thus risk the supply of electricity in North-East Bulgaria”, concluded the manager of ENERGO-PRO.
