“Our supply contract with RADET allows us to reduce the delivered quantity, the same as in any utilities contract. It is not true we are threatening to stop energy deliveries to RADET,” Cetacli stated.
The Bucharest City Hall announced Thursday that ELCEN is threatening to stop supplying RADET over its huge debts, leading Mayor Sorin Oprescu to call on the President, Prime Minister and Ministry of Economy to take urgent steps to resolve the situation. Oprescu blames this state of affairs on ELCEN and energy regulator ANRE’s “abusive and discretionary” procedures.
RADET owes ELCEN around RON1 billion, plus penalties of RON1.1 billion, accrued over 15 years. The producer needs to take out loans every winter to cover fuel costs, since its liquid assets are insufficient, said Cetacli.
On November 29, the Bucharest Council adopted a bill authorizing City Hall to ask the Government to erase RADET’s penalties for its debts to ELCEN, and request an exemption from the frame-contract approved by ANRE, so that the deadlines of ELCEN’s bills to RADET and of RADET’s bills to the end-consumers would be identical.
ELCEN is controlled by the state through Termoelectrica, while RADET operates under the authority of City Hall. (EUR1=RON4.3197)