Heating supply could be interrupted in the Capital on Tuesday, if Romgaz will no longer provide natural gas to Electrocentrale Bucharest (ELCEN).

This situation occurs in the context in which Romgaz announced in a press release that could halt gas supplies to ELCEN because of outstanding debts.

“We (ELCEN – n.r.) do not have money to pay gas from Romgaz, we have no money. If Romgaz interrupts gas supplies, we will not have the means to produce heat and hot water”, said the sources from ELCEN, qouted by Agerpres.

According to the press release by Romgaz, if ELCEN enters into insolvency, Romgaz will join the list of creditors, as one of the largest creditors of the company. ELCEN’s current debt to Romgaz amounts to 319 million lei.

“Romgaz SA is following with concern the events arising from insolvency requests by RADET and ELCEN in Bucharest. If ELCEN enters the insolvency, Romgaz will join the list of creditors, as one of the largest creditors of the company. From 27 September 2016, Romgaz SA is obliged to interrupt gas supplies to ELCEN” says Romgaz, in a press release.

On July 2016, Romgaz signed two contracts to supply natural gas to ELCEN, valid until September 30, 2017, with an aggregated value of 935.5 million lei. Also, the two companies agreed in August a rescheduling of the outstanding debts of ELCEN to Romgaz, for a period of 36 months.

“ELCEN told us that they can no can honor their contractual obligations as of September 27, 2016. The current contractual clauses and past experience that led to hundreds of millions of lei debt forced the management of Romgaz to stop supplying natural gas from this date until when solutions and measures will be identified to allow ELCEN to act in accordance with the contracts it signed with Romgaz,” reads the press release.

Romgaz claims that, as a listed company of national interest, has a duty to equally protect the interests of all its customers and those of the shareholders in full compliance with the law and its contractual commitments.

“Security of supply is a responsibility and a constant desire of the company, and Romgaz has assumed to deliver more than 50% of natural gas demand of the population in Romania, including 50% of the total amount of gas in storage for the winter season. Over time, Romgaz SA was a reliable partner for ELCEN Bucharest and, through this company, for the citizens of Bucharest. We have paid attention to this commercial partnership, making sure that security and continuity in supply is ensured even under the most adverse weather conditions. The management of Romgaz SA is following with concern the developments after the Autonomous Thermal Energy Distribution – RADET Bucharest decided to entry into insolvency. At the same time, the company is concerned about the impact this decision has on the ELCEN’s activity – ELCEN Bucharest, one of the main clients of Romgaz”, reads the press release by Romgaz.

RADET and then ELCEN decided earlier this week to ask for the insolvency, a decision meant to clarify the commercial and financial relations between ELCEN and RADET.