ELCEN is controlled by state-owned company Termoelectrica, while RADET operates under the authority of the Bucharest City Hall.
A memorandum whereby ELCEN will be taken over by the City Hall was approved by the Bucharest Council in November 2012.
According to the memorandum, Bucharest authorities want to create an integrated thermal power supply system by entirely taking over ELCEN.
Bucharest has a power supply system, which is not integrated and does not belong entirely to the city. It is operated by ELCEN, which runs five thermal power producers, and RADET, reads the document.
RADET’s debts to ELCEN will be written off once the merger is completed. The debts amounted to 2.24 billion lei (EUR0.51 billion) at the end of October 2012, of which RON1.44 billion was the principal sum and the remainder represented penalties for overdue debts. (EUR1=RON4.4032)