Electricity, water, heating and gas accounts after the death of the account holder are one of the heirs' first practical concerns. The bills keep arriving in the deceased's name, and sooner or later the providers require a change of account holder. It often turns out that there are also unpaid old debts, and the heirs do not know whether they have to pay them, who exactly, and how much.
In this article we explain how the accounts are transferred to the heirs, what documents are usually required, what happens to the deceased's debts and what the limitation periods are. We also look at the tax file at the municipality for building tax and the household waste fee, which many heirs overlook.
Why do the accounts need to be transferred to the heirs?
On death the succession opens (Art. 1 of the Inheritance Act), and the property passes into the ownership of the heirs. The contracts for the supply of electricity, water, heat and gas, however, formally remain in the deceased's name until someone asks for a change.
If the account is not transferred, practical problems arise:
- bills and annual adjustment (balancing) notices continue to be issued in the deceased's name;
- in the event of non-payment, the provider may cut off the service or bring a claim, and all the heirs will be joined as parties to the court proceedings;
- if the property is sold or let, the buyer or tenant cannot open an account in their own name until the matter is resolved.
Transferring the account does not mean accepting the inheritance. Even so, it is wise to decide on the inheritance before paying large old debts. We have described the general procedure after the death of a loved one in our guide "Inheritance in Bulgaria: first steps".
Who are the providers and whom should you contact?
The providers depend on the region. In Sofia the main companies are:
- electricity: Electrohold Sales (Електрохолд Продажби), with the network operated by ERM West (ЕРМ Запад). In the other regions of the country the suppliers are the companies of the EVN and Energo-Pro groups;
- water: Sofiyska Voda AD (Софийска вода);
- heating: Toplofikatsia Sofia EAD (Топлофикация София), together with the heat-metering (heat cost allocation) company for the building;
- gas: Overgas (Овергаз), if the property is connected to gas.
Each provider has its own forms and requirements. Some accept applications online, others require a visit to a customer service centre. So always check the current requirements on the website of the company concerned before submitting the documents.
What documents are needed to change the account holder?
The exact set varies, but in an inheritance the following are usually required:
- Death certificate or an extract of the account holder's death certificate.
- Certificate of heirs, issued by the municipality at the deceased's last permanent address.
- Title document for the property, for example the deceased's notarial deed.
- The provider's standard application form for a change of account holder.
- Consent or a power of attorney from the other heirs, where the account is opened in the name of one of them. Some providers accept a declaration, others require a notarised power of attorney.
- Identity document of the applicant and, if needed, a power of attorney.
- Meter reading, usually of the water, electricity or gas meter, as at the date of the change.
Is there a deadline for changing the account?
The law sets no general deadline for all providers, but some companies have their own requirements. For example, Toplofikatsia Sofia states on its website that, on the death of the account holder, the application for a change is filed within 30 days, together with documents of ownership. Missing the deadline usually does not lead to a penalty, but it complicates the adjustment bills. So act as soon as possible.
Who pays the deceased's old bills?
Unpaid electricity, water, heating and gas bills accumulated up to the death are a debt of the estate. Under Art. 60(1) of the Inheritance Act, heirs who have accepted the inheritance are liable for its obligations in proportion to the shares they receive.
In practice this means:
- if there are two heirs with equal shares, each is liable for half of the old debt, not the whole amount;
- the provider cannot claim the deceased's entire debt from one heir, unless that heir is the only one;
- obligations arising after the death are obligations of the new owners of the property, not of the estate.
From our practice: Providers quite often refuse to transfer the account until all the old bills have been paid. In law, the heir is liable only for their share of the deceased's debt. If a dispute arises over the amount or the limitation period, do not pay "blindly". Money paid after the limitation period has expired cannot be recovered (Art. 118 of the Obligations and Contracts Act).
What if the debts are large?
If you suspect that the deceased's liabilities exceed their assets, you can accept the inheritance under inventory. The application is filed in writing with the district court judge within three months of learning that the succession has opened (Art. 61(1) of the Inheritance Act). You can also renounce the inheritance. You are then not liable for the debts, but you also lose the assets. Before deciding, it is sensible to check what assets and debts the deceased had. We described how to do this in our article on tracing an estate: accounts, property, cars and company shares.
Limitation period for electricity, water and heating bills
Utility debts are periodic payments. Under Art. 111(c) of the Obligations and Contracts Act, claims for periodic payments are extinguished by a three-year limitation period. The courts consistently apply this period to claims for electricity, water and heat. The limitation period runs from the date on which each individual bill fell due (Art. 114 of the Obligations and Contracts Act).
There are, however, a few qualifications:
- The limitation period is not applied by the court of its own motion (Art. 120 of the Obligations and Contracts Act). If the provider brings a claim, you must expressly raise a limitation defence. Otherwise the court will award the old amounts as well.
- The limitation period can be interrupted, for example by acknowledging the debt or by a claim being brought.
- If you have already paid a time-barred debt, you cannot ask for the money back.
| Type of liability | Limitation period | Legal basis |
|---|---|---|
| Monthly electricity, water, heating, gas bills | 3 years from each bill falling due | Art. 111(c) of the Obligations and Contracts Act |
| Building tax and household waste fee | Under the Tax and Social Insurance Procedure Code (ДОПК), a different regime | Local Taxes and Fees Act and Tax and Social Insurance Procedure Code |
| Debts confirmed by a court judgment | 5 years | Art. 117(2) of the Obligations and Contracts Act |
Specifics of district heating and heat cost allocation
Heat supply has its own specifics, especially in multi-owner buildings connected to the district heating network. The reading and allocation of energy within the building are carried out by a heat cost allocation company, and an adjustment bill is issued at the end of the heating season. When changing the account holder, it is important:
- to ask for an interim reading of the meters as at the date of death or of the transfer;
- to check the adjustment bills for recent years and whether they include any amounts charged on an estimated basis;
- to file a declaration of payments made, where the provider requires one.
If the adjustment bill was calculated on an estimate rather than an actual reading, the amount can be challenged. These disputes often end up in court.
Internet, telephone and television contracts
Contracts for mobile and fixed-line services, internet and television were concluded personally by the deceased. The heirs are not obliged to continue them. Operators usually terminate the contract on presentation of the death certificate and the certificate of heirs. Check, however, whether there are unpaid monthly charges or devices being paid off in instalments, as these are also a debt of the estate. If the operator charges an early termination penalty, ask for a written justification. The conditions vary according to the operator's general terms.
The tax file at the municipality: building tax and household waste fee
In addition to the utility accounts, the heirs must also sort out the property's local tax file. Property tax and the household waste fee are owed by the owners (Art. 11 and Art. 64(1) of the Local Taxes and Fees Act).
Under Art. 14(6) and Art. 32 of the Local Taxes and Fees Act, on inheritance the heirs file a declaration with the municipality of the deceased's last place of residence within 6 months of the opening of the succession. It is important to know that:
- a declaration filed on time by one heir also benefits the others (Art. 32(5) of the Local Taxes and Fees Act);
- if nobody files a declaration, after the deadline expires the municipality opens a file of its own motion, based on the data it holds;
- for an heir who is not a spouse, descendant, parent, brother or sister, the deadline runs from learning of the inheritance (Art. 32(2) of the Local Taxes and Fees Act).
Tax and fees left unpaid at the date of death are also a debt of the estate.
The heir is abroad, the property is let or is being sold
If you live abroad
All steps relating to the accounts can be taken through an attorney-in-fact with a notarised power of attorney. Some providers also accept documents by email. We described how to prepare a power of attorney abroad in our article on heirs living abroad and settling an inheritance in Bulgaria.
If the inherited property is let
The tenant can be the account holder if the owners consent. Some providers require notarised consent. Agree in the lease who pays the bills and how payment is proved. For more, see our article on the key clauses in a lease agreement.
If the property is being sold
The buyer will ask for proof that there are no debts to the providers or the municipality. We recommend that the accounts be sorted out and the bills cleared before the transaction. We explain what the buyer checks in our article on legal due diligence before buying property.
Frequently Asked Questions (FAQ)
Do I have to pay my late parent's electricity and water bills?
If you have accepted the inheritance, you are liable for the unpaid bills, but only in proportion to your share of the inheritance (Art. 60(1) of the Inheritance Act). If you have renounced the inheritance, you are not liable for them. If you suspect the debts are large, you can accept the inheritance under inventory.
Can the provider refuse to transfer the account until the old bills are paid?
In practice some providers impose such a condition. The heir, however, is liable only for their share of the old debt, and you can object to time-barred amounts. In a dispute, it is best to ask for a written refusal and seek legal advice.
What is the limitation period for electricity, water and heating bills?
The bills are periodic payments and are extinguished by the three-year limitation period under Art. 111(c) of the Obligations and Contracts Act. The period runs separately for each bill from the date it fell due. It is not applied by the court of its own motion, so you must expressly rely on it.
What documents are needed to change the account holder after a death?
Usually the death certificate, the certificate of heirs, a title document, the standard application form and the consent or power of attorney of the other heirs are required. The exact requirements vary between providers, so check them in advance on the company's website.
Is there a deadline for transferring the heating account?
Toplofikatsia Sofia specifies a 30-day deadline for filing an application on the death of the account holder. Other providers may have different requirements. The sooner you deal with it, the easier it will be to calculate the adjustment bills.
Do I have to file a declaration with the municipality for the inherited property?
Yes. The declaration of inherited assets is filed within 6 months with the municipality of the deceased's last place of residence (Art. 32 of the Local Taxes and Fees Act). A declaration filed by one heir also benefits the others. For more on all the deadlines, see our guide "Inheritance in Bulgaria: first steps".
How do I find out whether the deceased had other debts besides the bills?
You can make enquiries with the BNB's Central Credit Register, the National Revenue Agency and the municipality. We describe the steps in detail in our article on tracing an estate.
Can I sort out the accounts if I live abroad?
Yes, through an attorney-in-fact with a notarised power of attorney, and some providers also accept documents by email. You will find details about a power of attorney made abroad in our article on heirs living abroad.
Can the tenant of the inherited property open an account in their own name?
Yes, usually with the owners' consent, and some providers require it to be notarised. Agree in the lease who pays the bills and how payments are proved. See also our article on the key clauses in a lease agreement.
What happens to the deceased's mobile phone and internet contract?
The heirs are not obliged to continue the contract. Operators usually terminate it on presentation of the death certificate. Charges unpaid at the date of death, however, are a debt of the estate.
How can we help you?
Transferring the accounts looks like an administrative formality, but it often hides disputes over old debts, limitation periods and adjustment bills. The lawyers at Mechkova & Dimitrova Law Firm can check the estate's liabilities, raise limitation defences and represent the heirs before the providers and in court. You will find more about our practice on our family and inheritance law page.
The information in this article is general and does not replace advice on your particular case. Contact us for advice on transferring utility accounts and the debts of an estate.
