ELCEN launches into a division process. The merger with RADET follows.
Source: www.elcen.ro

ELCEN (Electrocentrale Bucharest), the largest domestic thermal energy producer starts a division process which includes the transfer of part of its assets towards two newly established companies, ”Societatea Electrocentrale Constanta S.A.” and ”Societatea Electrocentrale Titan S.A.”. Subsequently, these companies will be taken over by the local authorities, while ELCEN will merge with RADET (the Direction assuring thermal energy distribution in Bucharest), once it is converted into a trading company.

The division project concerns the restructuring and the streamlining process of ELCEN’s operations and it was issued by the company’s Bord of Directors based on the ”Assuring public services for heat supply through an integrated centralized heat supply system (SACET) in Bucharest Constanta” Memorandum which was enacted by the Romanian Government in March 2013, as well as on the Resolution following the General Meeting of ELCEN’s Shareholders in May 19, 2014. It was published in Romania’s Official Gazette earlier this week, on June 4.

“The division will be succeeded by the transfer of the entire stake in Electrocentrale Bucharest S.A. and Electrocentrale Constranta S.A. under the local authorities' control. The merger with RADET is also on the agenda, once the Autonomous Direction will turn into a trading company. Following the merger, we will have a common development strategy as regards the SACETs, seeking an increasing efficiency and streamlining costs, taking into account the level of affordability for end users. At the same time, the SACETs will be able to develop business strategies to secure consumers’ loyalty, as well as to reconnect to the heat system those of them who have decided to use their own natural gas heat facilities”, explained Gabriel Ignat, ELCEN’s CEO, according to a press release.

Upon concluding the division, ELCEN will have under its control the West CHP Plant, the South CHP Plant, the Grozavesti CHP Plant, the Progresu CHP Plant and the Repairs Facility. On the other hand, Electrocentrale Titan will have in its portfolio the Titan CHP Plant and the Fantanele CHP Plant, as well as other assets transferred from ELCEN, likewise Electrocentrale Constanta which will manage the Palas CHP Plant and the thermal energy transport networks serving Constanta.

ELCEN is currently administered by the Ministry of Economy, through the Department of Energy, as the major shareholder with a 92.35 percent stake, the other shareholders being Electrocentrale Grup S.A. with 5.39 percent of the shares and Romgaz (2.26 percent). It comprises three branches – Electrocentrale Bucharest, Electrocentrale Mures and Electrocentrale Constanta, the six power plants it operates having a total power capacity installed of 1.2 GW.

The company established in late 2002 as a branch of S.C. Termoelectrica S.A. is the largest heat producer in Bucharest where accounts for 85 percent of the thermal energy produced and also, across Romania where provides 40 percent of the total production. Additionally, ELCEN supplies 7 percent of the electric power produced nationwide. Last year, the company posted revenues amounting to some 1.7 billion lei (380 million euro) and a net profit coming to 51 million lei (11.7 million euro).

 

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