The memorandum targets the realization of the public service of thermal energy supply in a centralized system, respectively the production, transport, distribution and supply of thermal energy in capital city of Bucharest, in order to optimally use energy resources and in compliance with environmental protection norms, population health and sustainable development.
The new company could be established this year, and the majority stake would go to the Ministry of Energy.
“A centralized system is needed as we all see the problems Bucharest is facing every day. Therefore, both companies must work together when we talk about investments,” energy minister Sebastian Burduja said in a briefing at the end of the government meeting.
The minister added that “through the solution provided by the Memorandum approved by the Government of Romania, the Ministry of Energy maintains its commitment to ensure decent living conditions in people’s homes, by solving the problems related to the lack of hot water and heat, and to make investments in an integrated heating system for Bucharest, with the aim of increasing the quality of the public service, at a fair rate for the population and companies (…). The integrated system is the only solution to provide Bucharest people with heat and hot water, but it is also a solution to allow the General City Hall to increase its investment budget in the medium and long term.”
Termoenergetica still has RON800 million debts to ELCEN. “It is clear that at present, the money for a capital infusion is no problem at all,” Burduja said, adding that a solution for the municipality of Bucharest could be a bond issue or a loan.
Over the years, authorities have attempted several times to achieve a merger between the two companies, but the main problem was the historical debts of RADET (the former name of Termoenergetica) to ELCEN.