Bucharest’s thermal energy producer Electrocentrale Bucureşti (Elcen) increased the price per gigacalorie by 10.2% at end-2014, but the population won't be affected by the increase, as the City Hall plans to cover for the price hike, said Sorin Oprescu, the Mayor of Bucharest.

"On Christmas Eve, on December 24, 2014, on a non-working day, RADET, the thermal energy distribution company, received from Elcen a notice related to the increase in the thermal energy tariff starting January 1, 2015," said Oprescu.

The mayor added that the municipality was not consulted nor even informed by Elcen on the price increase, and RADET representatives announced that they had not requested an increase in the cost of transport and heat distribution. Oprescu said that people will not be affected by the tariff increase and that the municipality will bear the extra costs.

In 2014, the price per gigacalorie was of RON 341, but the cost was subsidized and the population paid only RON 169, and the City Hall covered the rest. The Bucharest City Hall spent some EUR 120 million for these heating subsidies. To cover the price increase for this year, the City Hall would have to have an extra EUR 16 million to its budget.

The two companies that work together in providing heating in Bucharest, Elcen and RADET, should have merged in end-2014, but the Government delayed it, asking for a plan and a risk assessment. The merger would solve the heating issue in Bucharest, including the debt RADET holds towards Elcen, and it would allow the municipality to control and coordinate the production and distribution of heating and hot water.

editor@romania-insider.com