The merger between the companies Elcen and Termoenergetica is necessary because a centralized system of production, transport, distribution and supply of the thermal agent is needed, considering the daily problems of tens of thousands of Bucharest residents who do not have heat and hot water, stated, on Wednesday, the Minister of Energy, Sebastian Burduja, at the briefing at the end of the Government meeting.
The Executive adopted, on Wednesday, a memorandum aimed at realizing the public thermal energy supply service in a centralized system for the municipality of Bucharest, a project managed by the Ministry of Development and the Ministry of Energy.
“It is an ongoing problem. For at least 10 – 15 years, there has been talk about the need to integrate the production, transport, distribution, supply of the heating agent for the people of Bucharest. Concretely, this means a merger between Elcen, a company of the Ministry of Energy, and Termoenergetica, a company of the General City Hall. Why is this merger needed? Because we need a centralized system of production, transport, distribution and supply of heating agent, because we see the everyday problems of tens of thousands of Bucharest residents which do not have heat and hot water, because both companies must work together when we talk about investments. In vain, for example, we are now preparing in the first half of this year to launch calls for the modernization of the CETs, if they are not modernized and the district heating network. I’m not talking about all the cost savings that result from a merger,” said Burduja, quoted by Agerpres.
According to the minister, with the adoption of this memorandum, “we have a roadmap, which means an analysis of the legislation that needs to be amended, it means requesting the point of view of the Municipality of Bucharest, of the General City Hall” regarding this merger.
In addition, the approval of the document means the initiation of the merger itself, through the General Meeting of Shareholders of the two companies.
“We are determined to move forward with this approach, because what is at stake is the quality of life in Romania’s most important city, the municipality of Bucharest,” pointed out the minister of Energy.
According to a press release from the Ministry of Energy, once the memorandum is adopted, MDLPA will analyze and promote any necessary changes to the legal framework, within 90 days. The Ministry of Energy has 15 days to address the General City Hall, to obtain the point of view of the local administration regarding the Elcen – Termoenergetica merger. Later, the two companies will be able to initiate the necessary legal steps, so that the merger can be completed by next year.
“I managed both companies and I can tell you very clearly that the only solution is the merger between the producer of electricity and thermal energy and the operator of the heating network in Bucharest, which will allow the creation of a new, efficient, modern company that will be able to attract funds for the synchronized realization of investments both at the level of production sources and at the level of thermal energy transport and distribution networks. The indissoluble relationship between Elcen, as the majority producer, and CMTEB, as the transport operator, is affected by the fact that the two entities have different subordination, but also different development strategies, without there being a coherence in the modernization and re-technology in a unitary approach of the two,” added Claudiu Crețu, ELCEN general director.
The Minister of Energy reiterated that, in Bucharest, Termoenergetica has debts to Elcen of over 800 million lei, largely caused by losses in the system, determined by various factors: age, legislative inconsistency, non-approval of tariffs, high dynamics of the elements of cost from the thermal energy price, etc.
“This situation would not have been possible within a single coordinated production-transportation system. Ensuring stability at the level of the centralized heating system is essential. Synchronization of investments, repairs and overhauls is needed. The sole responsibility for the operation and management of the entire system will have positive consequences in terms of energy efficiency measures starting from the heat source to the consumer, improving the activity, reducing operational costs and in bills. We will shortly present an integrated plan to modernize the heating system, including the integration of renewable technologies, geothermal , energy storage, so that the price for the population is as low as possible, but also the subsidy of the municipality decreases significantly,” concluded Sebastian Burduja, according to the press release.
The memorandum stipulates that the merger between Societatea Electrocentrale Bucureşti SA (Elcen) and Compania Municipală Termoenergetica Bucharest (CMTEB) will be carried out on the condition that, on the date of the merger, all ELCEN claims against CMTEB, recorded in their accounting, will be paid.
After the completion of the merger procedure, the Municipality of Bucharest has the possibility of making a capital contribution to the absorbing company or, as the case may be, to the new company resulting from the merger procedure, by increasing its capital, depending on the financial availability it has at its disposal.