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Bucharest City Hall, to come up with solutions for distribution of heating agent, after RADET's bankruptcy

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Bucharest City Hall should come up with solutions on Tuesday so that Termoenergetica gives orders for the takeover of the thermal agent, given that the public heat distribution corporation RADET no longer exists, but this company is not licensed for the distribution of thermal energy, Minister of Economy and Energy Virgil Popescu said on Monday.

"ELCEN is worried about the current debts which can amount to 3 million lei per day if the City Hall does not pay its debts. We are therefore very worried about the possibility of ELCEN supplying the heat and the City Hall not paying, but we take it on good faith. ELCEN is not even considering to cut the Bucharesters' supply of hot water and heat. We are expecting the City Hall to come up with the solution tomorrow [Tuesday] at the earliest but also at the latest, with the respective legal entity, Termoenergetica, issuing orders for taking over the heating agent, because with RADET going bankrupt, it no longer has the legal capacity, it practically no longer exists," the minister told Digi24 TV private broadcaster.

He explained, however, that Termoelectrica does not have a license for the distribution of thermal energy, and the General Council of the Capital must delegate to this entity a public utility service.

"The supply of heating agent to the Bucharest residents will not be cut, but the Bucharest residents should know that Termoelectrica does not have a license for the distribution of the heating agent. Today I had a discussion with ANRE [the National Energy Regulatory Authority] and this was confirmed to me. To have this license it must firstly be delegated the public utility service. This is done by the General Council of Bucharest. The General Council needs to convene, to delegate this service, and afterwards it will be licensed. There can be deliveries upon order of the Bucharest City Hall directly to ELCEN," the Minister of Economy and Energy said.

The Bucharest Court of Appeal (CAB) ruled on Monday that the Bucharest Thermal Energy Distribution Autonomous Administration (RADET) should go into bankruptcy, the decision being final. The CAB judges rejected the appeals made in the trial, maintaining the decision made in April 2019 by the Bucharest Court, which ruled RADET's bankruptcy.

The electricity and heat producer ELCEN showed on Monday, in a press release sent to AGERPRES, that the opening of RADET's bankruptcy procedure will not see the supply of the heating agent discontinued, as long as its payment will be ensured by the Bucharest City Hall.

ELCEN is currently in the process of reorganization and can ensure the supply of heating agent and hot water to Bucharest residents as long as the payment of these services is ensured, including the payment of the subsidy by the Bucharest City Hall.

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