Bogdan Tudorache

Following investigations initiated by Sierra Quadrant, the administrator of ELCEN, it turns out that RADET requested a subsidy for only one third of the energy provided by ELCEN.

“Based on the evidence we have, until the completion of the drafting of the documents that we will submit to the authorized bodies of the state, we are able to inform the public opinion that, in July 2019, RADET asked the Bucharest City Hall (PMB) to grant a subsidy only for the quantity of 36,831,708 Gcal, out of a total of 115,339 Gcal delivered by ELCEN which should have reached the population. (…) RADET has requested for the distribution to the population a greater quantity than necessary, selling the additional thermal energy to other customers, at higher prices, recording revenues in accounting and assuming from the beginning the partial payment of ELCEN invoices and affecting the economic situation of the latter,” say Sierra officials.

RADET is going to request or requested the PMB also for a payment difference, to cover the costs of the entire quantity of 115,339 Gcal delivered by ELCEN and distributed by RADET, but not with the subsidy title. Thus, the sums received from the PMB without a subsidy title can be used for other purposes, provided that the heat subsidy was to be deposited in an escrow account available to ELCEN and can only be used for the payment of the delivered heat agent delivered by ELCEN.

“Through these accounting and reporting means, RADET can continue to accumulate debts to ELCEN, relying on the fact that ELCEN will not cease the delivery of hot water in the cold season.”