In full ELCEN-RADET scandal, the former GDF Suez, ENGIE, argues that the insolvency of the energy producer Electrocentrale Bucuresti S.A. (ELCEN) was made without consulting all the interested parties (stakeholders).
“ENGIE Romania, energy group that owns Distrigaz Sud Retele, service provider of distribution of natural gas to ELCEN, was surprised and deeply concerned, regarding the decision of the Board of ELCEN to initiate the insolvency proceedings of the company” reads a press release of the company.
“This decision, taken without consulting all the parties involved will have negative consequences on the financial situation of Distrigaz Sud Retele, jeopardizing the investments necessary for the safely operation of the distribution network of natural gas, both at Bucharest level and of the entire area operated by the company”.
The total amount of due debts accumulated by ELCEN to Distrigaz Sud Retele, currently amounts at 155 million lei and will significantly increase during the cold season.
Throughout the entire contractual relationship, Distrigaz Sud Retele has proven repeatedly its availability for dialogue and to identify viable solutions such as rescheduling the ELCEN debt, in conjunction with their financing by its majority shareholder. In addition, despite the accumulation of major claims, Distrigaz Sud Retele permanently adopted a constructive and responsible attitude, of finding solutions that would not have any negative consequences on the supply of hot water and heating to the RADET customers.
The only long lasting solution for avoiding the bankruptcy of ELCEN and RADET, and to guarantee the long-term supply of heating and hot water to the inhabitants of Bucharest, consists of the immediate mobilization of significant financial resources, both by the Romanian state and the Municipality of Bucharest.
ENGIE Romania again calls upon the competent authorities so that, together, to implement this solution and thus not to affect the trust of the ENGIE group in the energy sector in Romania, trust translated into investing about one billion euros since the privatization of Distrigaz South and until present.