Elcen: Bucharest City Hall refuses to pay in advance the gas needed to produce heat in the Capital

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The City Hall of Bucharest (PMB) did not sign the agreement for the advance payment of the natural gas needed for the production of heat and hot water in the Capital, although the document was approved by the General Council of the Municipality of Bucharest (CGMB), according to a statement from the Bucharest Power Plant (Elcen).

The General Council approved by Decision no. 626 / 14.11.2019 signing the agreements to justify the advances for the heating season 2019-2020, including the convention to justify the advances no. 1/2019 between the municipality of Bucharest, Termoenergetica, Elcen and Romgaz.

By concluding this agreement, the PMB undertakes to pay in advance directly to the natural gas supplier’s account the amount of natural gas required for the delivery of the thermal agent between October 2019 and March 2020. These funds are used exclusively to provide the necessary gas stock for the operation at optimum parameters and the safe delivery of the thermal agent to the inhabitants of the Capital, according to Agerpres. “We would like to point out that the Bucharest City Hall must comply with the payment obligations of both the subsidy and the losses generated by RADET,” the representatives of the energy producer stated.

In addition, the delegation of the heating service to the company Termoenergetica involves covering some very important stages, such as capitalization. This company needs substantial working capital and a constant financial flow in order to operate.

The sole aim of the PMB in this regard was to allocate in reality an amount with an extremely low value, although at the CGMB meeting of 14.11.2019, a capital increase of approximately 650 million lei was approved.

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