RADET goes bankrupt; Termoenergetica Municipal Company to take over activity, employees

RADET, the company that distributes thermal energy to most households in Bucharest, was declared bankrupt through a decision of the Bucharest Courthouse. Bucharest City Hall is reassuring the public that the city will continue to have hot water and heat to optimal parameters, and the entire activity of RADET will be taken over by the Termoenergetica Municipal Company.

“I assure all citizens of the capital that they will still have hot water and heat to optimal parameters! Today’s court decision has no consequences on the continuity of heating supply to the population, because we have taken the necessary measures in advance so that the citizens of Bucharest can be protected. Particularly, I have proposed and the General Council has recently approved the establishment of the Termoenergetica Municipal Company of Bucharest, which has as its exclusive purpose to produce, distribute, transport and supply thermal energy, and I want to let RADET employees know that they will not even feel this change either, there will be no layoffs, as the entire staff will be taken over by the new operator,” says general mayor Gabriela Firea in a press release.

She pointed out that RADET’s bankruptcy does not mean the interruption of the heating supply to the population, as has been “mistakenly” stated in the public space.

“The new company will take over all of these services and will continue to invest in the modernization of the district heating system in Bucharest, which for almost three decades has not been a priority for previous administrations,” added Firea.

The municipality notes that it has been responsible for the first major investments in the city’s district heating network after more than seven years “marked by the lack of any investments or works on the system”.

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The Bucharest Courthouse’s decision is not final.

RADET Bucharest is the manager of the largest heating system in Romania, holding 43 percent of the market. It supplies heat for approximately 562,000 apartments, accounting for about 8,200 housing blocks and 320 buildings, with 1.21 million inhabitants, as well as about 4,900 institutions, social objectives, and economic agents. The company is the operator of the public heat supply system, providing 72 percent of the capital’s heating demand. RADET has almost 3,000 employees.