Prime Minister Marcel Ciolacu, Energy Minister Sebastian Burdugia and Mayor Nikušor Dan realized that it was necessary to merge Elcen, a heating agent and electricity producer, and Termoenergetica, a Bucharest heating agent transport and distribution company.

Consolidation of the centralized heating agent supply system in one company is the only way out to save the entire chain (Termoenergetica, Elcen, Romgaz), which is part of the national electricity system and which would endanger not only the heating of Bucharest residents, but also the entire energy industry .

(It should be remembered that the mayor-general has not yet responded to the appeal of Minister Burduzhi, launched in July 2023, which referred to this union, but from the statements of this entire period, he has not changed his option.)

Thus, on January 31, 2024, the government led by Marcel Çolaku, who is from the PSD, with the support of Sebastián Burdugia (from the PNL) and Adrian Ioan Westea (also from the PNL), signed a memorandum on the merger of Elcen and Termoenergetica.

In other words, theoretically in the General Council of the capital there is a majority of PSD, PNL and USR regarding the merger.

On February 13, according to the memorandum, the Ministry of Energy informed the Main City Hall of the capital about Memorandum approved during the meeting of the Government of Romania, the subject of which is: “Implementation of the public service for the supply of thermal energy in a centralized system (SACET), respectively the production, transportation, distribution and supply of thermal energy to the Municipality of Bucharest with the aim of optimal use of energy resources and in accordance with norms of environmental protection, public health and sustainable development”.

There are solvable objections

I am glad that the mayor realized that during his four years in office, the amount of the subsidy that the mayor’s office made to cover the losses of Termoenergetica, which is 1.5 billion lei annually, is a total of 6 billion lei that could be used for something else.

The situation is extremely serious! Thermal energy has at least one breakdown every day, which threatens the health of tens of thousands of Bucharest residents. The company “Termoenergetika”, which is in a difficult situation, has no chance to appeal to the PNRR. Until recently, Eltsenul was in the same situation, which only a year ago came out of bankruptcy caused by the city hall due to RADET. Only now he can receive certain funds for the expected investment. Let’s not forget that technology and equipment are extremely old and inefficient. If Elcenul can still survive, it is thanks to the favorable situation in the electricity market, and it can cope (with difficulty!) only when the price per MWh is high, in a situation where it is penalized with CO2 certificates of 100 million euros annually.

The mayor said that he wants to check the unprofitability of “Thermoenergy”. Perfectly! Let’s see what conclusion the experts will come to.

His Lordship also stated that he wanted the municipality to have less than 50% of this new company. The merger of two commercial companies will take place in accordance with the law: they will be evaluated, as a result of which the percentages of the Ministry of Energy and the City Hall in the new company will be determined. Of course, if the City Hall wants to have more than 50%, it is possible. If the evaluation does not show that the assets and liabilities of Termoenergetica could potentially be lower than the assets and liabilities of Elcen, the municipality can receive a capital contribution to own 50% or more. (It should be remembered that at the end of February 2024, Termoenergetica owes Elcen 800,000,000 lei.)

Another objection is RADET’s historical indebtedness to Elcen. If we read the memorandum carefully, we will see that it is mentioned only to show the expediency of the association. (We do not discuss the journalists’ interpretations.) Union between Termoenergetica and Elcen. RADET is missing from the synthesis equation. (I also don’t think it would be legal for this bankrupt company to participate in the merger.)

The moon at the end of the pipe

It cannot be said that the mayor was not concerned about the state of the heat supply system. Much more investment has been made than was made in Mrs Fier’s ‘middle age’. But the expectations of the people of Bucharest were much higher. In addition, the number of kilometers of the pipe is significantly less than the promises made during the election campaign four years ago. But I believe that the functional apparatus of the city hall is sick and it is quite possible that they sabotaged many of its initiatives. _

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