Electrocentrale București (ELCEN), the Capital’s electricity and thermal energy producer, posted on its Facebook page a reaction to the statements of Mayor Nicușor Dan, who said that not only the heating agent distribution network is deficient, but also the power plants heating (CET), which are very old, according to e-nergia.ro.
“The ELCEN CETs did not benefit from major investments in the modernization of equipment because the Capital City Hall did not pay on time, for several years, the subsidy for the thermal energy produced and delivered”, the document states.
“The outstanding debts of Termoenergetica towards ELCEN are currently in the amount of 803,285,507 lei. This is due to the fact that it did not exist for several years and there is not even currently a reliable source of financing: Bucharest City Hall accumulates large debts to pay the subsidy, Termoenergetica implicitly accumulates debts to ELCEN, and ELCEN is consequently deprived of the essential financial resources for making investments in the modernization of CETs.
“In this vicious chain, the chances of modernizing the heating system faded over time, both on the production side and on the transport and distribution side. All together produced in 2016 the insolvency of RADET which automatically attracted the almost simultaneous insolvency of ELCEN, the bankruptcy of RADET in 2019 and currently the accumulation of large debts in a very short time of to Termoenergetica (the replacement of RADET) in relation to ELCEN,” ELCEN officials also say.
Even under these conditions, ELCEN provides, in the summer scheme, thermal agent at optimal operating parameters up to the fence of the CETs, according to the Termoenergetica order. That is why, from the point of view of the activity provided by ELCEN, the need for heating agent for hot water for the city’s inhabitants is currently ensured.
“There is a need to modernize the CETs and there is enough European money available for this. However, PMB’s non-payment of the subsidy – the cause of ELCEN’s insolvency – makes it difficult for now to attract European money for the implementation of new groups at ELCEN.
The immediate start of investments in energy efficiency projects would allow a good functioning of the heating system, of the national energy system, with high returns, losses reduced to a minimum and increased flexibility”.
Bulgaria granted a 410 mln. euro loan to Bulgargaz
Bulgarian Government decided to grant an 800 million BGN loan to Bulgargaz, highly affected by unpaid account receivables. The Government expects the company repay the loan as quickly as possible by taking loans from other institutions, according to Novinite. In order to fill the liquidity deficit of Bulgargaz, loans will also be sought from private banks, announced Minister of Energy, Rosen Hristov.
Hristov explained that in addition to “Toplofikatsia Sofia” (Heating Systems Sofia), which owes “hundreds of millions” to “Bulgargaz”, other heating companies, hampered by the expensive gas, as well as other customers of the state gas supplier, are starting to delay their payments.
The minister announced that the Government expects the Bulgarian-Greek gas connection to finally be put into operation at the beginning of September, but this has not yet been confirmed by the builder – the Greek company Avax. Its director has been invited to a meeting with President Rumen Radev on Friday, when an updated schedule for the completion of the project is also expected.