Distrigaz orders Bucharest thermal energy producer’s accounts frozen

Gas distributor Distrigaz Sud Retele has ordered a garnishment on all the bank accounts of Bucharest-based thermal energy producer ELCEN for an amount of about EUR 2.6 million. ELCEN could thus stop the production of electrical and thermal energy starting September 9, the state-owned company announced, reports local Agerpres. The bailiff mandated by the Distrigaz general director Dan Pantilie froze ELCEN’s accounts yesterday. The garnishment has also been extended to the customers of ELCEN, including the energy distributor RADET. Distrigaz representatives later said that the garnishment can be lifted if ELCEN immediately pays a first tranche of EUR 1.3 million, namely 50% of the garnishment’s value. ELCEN claims that it’s unable to honor payments to suppliers and distributors of raw materials and services due to its debts. It mainly puts the blame on the energy distributor RADET, which owes it a lot of money, according to ELCEN. This situation may leave Bucharest’s residents without hot water. RADET debts may leave half of Bucharest without hot water editor@romania-insider.com (photo source: Elcen.ro)