Romanian Govt Granted Bucharest Mayoralty Ron35m To Pay Heat Subsidies - Mayor

Bucharest general mayor Sorin Oprescu said Wednesday morning that he received a notice from the government saying it gave the mayoralty 35 million lei (EUR1=RON3.8131) to cover heating subsidies.

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Heat supplier RADET, which is under the administration of the Bucharest mayoralty, started heating Bucharest homes on October 27, when the weather got significantly colder.

Oprescu said Tuesday he would refuse to make any payments until RADET’s penalties on a RON1.3 billion debt to state-owned power producer Electrocentrale Bucuresti ELCEN are rescheduled.

"RADET owes ELCEN RON1.3 billion, of which RON800 million are penalties. Unless a fair decision is made to fix this, we’ll continue to pay without recognizing this debt,” Oprescu said.

According to the Bucharest mayor, the government’s decree of 2005 is unfair as it forces the mayoralty to pay utility bills within 15 days, while state subsidies for utility bills are not granted within the same 15-day time limit.

Romanian Prime Minister Calin Tariceanu said Tuesday he urged the Finance Ministry to start negotiations with the Bucharest mayoralty “at once” to find a way for RADET to pay its debt. He said the heat supplier owes RON500 million plus RON800 million in penalties.

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