Page 21 - Proceeding 2015

ALPOPI Cristina FAMP

DEVELOPMENT OF HEAT PUBLIC SERVICE SUPPLY - STRATEGIC OBJECTIVE OF LOCAL CCASP
GOVERNMENT

? RADET Bucharest - transport and distribution networks operator and also of other public assets
of Bucharest which offers public service

? ELCEN - operator of five thermal energy plants, that although have an important role in the
PROCEEDINGS OF THE 11 TH ADMINISTRATION AND PUBLIC MANAGEMENT INTERNATIONAL CONFERENCE
production of electricity in the national energy system, provide over 90% of the production of
thermal energy required of users of the public service under the responsibility of the Bucharest
municipality.

These two entities is in the portfolio of two separate administrative authorities namely CBMB and the
Ministry of Economy. Between this authorities, does not exist coherent decision-making, therefore exist
malfunctions of the entire SACET, with negative consequences for the population.

This is one of the reasons that Bucharest municipality can not control the price of thermal energy
production, which represents an essential component of the energy price billed by RADET to public
service users and can not determine a strategy for increasing energetic efficiency of all chain technology.

30 th – 31 st October 2015 ”Strategic Management for Local Communities” Bucharest lei. ? current public service organization at Bucharest and the fact the assets that compose SACET
At the end of 2013, RADET Bucharest registered a total debt against ELCEN over 3.000.000 thousand

Thus, considering:

Bucuresti belong to different entities (Bucharest municipality and ELCEN);

? the existence of financial problems between RADET Bucharest and ELCEN and the need to
solve them;

? legal obligation to reorganization of the autonomous administrations;

? european directives that impose mandatory to increase energy efficiency, an objective that can
only be reached by achieving integrated SACET in terms of their ownership and operation, the

only way to solve these problems is to implement "retained solution", according to art. 4, letter
b1 of the Memorandum "Bucharest Municipality through Bucharest Municipality General Council
(CGMB) will proceed, through its decision, to the administrative reorganization of RADET in

commercial society having Bucharest municipality as sole shareholder, according to O.U.G.
no.30/1997 on the reorganization of autonomous administrations and will conclude with the

resulted company, after the reorganization of RADET, a public service management contract".

RADET reorganization represents both a legal obligation and the first stage of the Bucharest Strategy on
Public Service approved by Decision of CGBM no. 108/2013.

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