THE INTEGRATED SERVICE OF DISTRICT HEATING THROUGH BUSINESS TRANSFER. THE CASE OF BUCHAREST MUNICIPALITY

The Public Service of Heat Supply (district heating) is a public service of general interest that is carried out in a centralized system and is part of the community services of public utility. The activities specific to this service mainly involve the production of heat and electrical energy, having as their main source the heat power plants belonging to Electrocentrale Bucuresti S.A. and the distribution of heat energy currently realised by RADET S.A., both bodies being in insolvency at the moment. In terms of public utility services, the European Union creates a specific legal framework for services of general economic interest, focusing on the role of national authorities in managing these services. Thus, the authorities may entrust the delivery of above-mentioned services to public-owned enterprises. In this context, the foundations of the centralized heat energy system were established with the founding of Bucharest's Municipal Energy Company and of Bucharest-Ilfov Association of Intercommunity Thermo-Energy Development. Also, in the realization of the concept of SACET (Centralized Heating Energy Supply System) and in order to be able to access European funds two decisions regarding the business transfer of ELCEN/RADET towards Bucharest's Municipal Energy Company were approved.