Energy Ministry officially notifies Bucharest City Hall of ELCEN-Termoenergetica intended merger

The Energy Ministry has officially notified the Bucharest City Hall of the proposed merger between power and heat company Electrocentrale Bucharest SA (ELCEN) and municipal utility company Termoenergetica Bucharest S.A., which was approved by the government through a memorandum on 31.01.2024. The purpose of this move is to set in place a public service for the centralised supply of heat, respectively the production, transport, distribution and supply of heat in the Municipality of Bucharest, with a view to best use energy resources, in compliance with environmental protection, public health and sustainable development regulations. The Bucharest City Hall is required to transmit a point of view reflecting the in-principle agreement (non-binding) with the merger between Electrocentrale Bucharest S.A. (ELCEN) and Termoenergetica Bucharest S.A., the Energy Ministry said in a release on Tuesday.

"Yesterday, more than 200,000 Bucharest residents in almost 1,500 blocks were left without heat and hot water. This is simply unacceptable. We are doing everything that depends on the Energy Ministry to solve this issue, allocating money from the Modernization Fund both for the modernization of the district heating plants, as well as for the rehabilitation of the network. Two weeks ago we launched a call for over half a billion euros worth of investments in district heating networks, with the allocation of funds on a first-come, first-served basis. Unfortunately, the Bucharest City Hall has not submitted any project yet, although the problem is extremely serious. Equally serious is the fact that Termoenergetica, a company of the General City Hall, currently owes ELCEN - which stands under the authority of the Energy Ministry - approximately RON 800 million. I invite mayor Nicusor Dan to sit down with us to find a quick solution to the needs of the people of Bucharest. We must work as a team to ensure that the Bucharesters live in 2024 at the standards of a European capital, complete with hot water and heat. Investing in the modernization of the heat supply system is not only a technical necessity, but also a moral obligation towards the citizens of Bucharest," Energy Minister Sebastian Burduja said.

The official mentioned that the optimal solution for Bucharest would be to have a sole company for the production, transport, distribution and supply of the steam for hot water and heat.

"This is how we will be able to cut the Bucharesters' maintenance bills, so that the price per Gcal is RON 400 as in Oradea, not RON 1,000 as in Bucharest today. It can be done until 2025, it all depends on the availability of the Bucharest City Hall. An integrated system is the only sustainable solution to provide the people of Bucharest with heat and hot water in their homes, but it is also an opportunity for the General City Hall to increase its medium and long-term investment budget, to think and act strategically," Burduja said.

The Energy Ministry specifies that up until now, the Bucharest Mayor has not responded to the invitation.