CET Braşov Recovers Only 6% Of Receivables

• Court leaves Brasov residents without hot water

Only 6% of the 12 million RON overdue debt that residents of Brasov owe to the local heating company CET Brasov has been recovered since hot water supply was terminated. CET Brasov CEO Florin Cutitei told BURSA that, given the circumstances, it was unlikely that the company should resume operations, so the residents of Brasov would have to continue to manage without hot water. According to him, CET Brasov has won approximately 50 lawsuits against bad debtors in the last month. "As soon as we went to them with a bailiff, the people came up with the money and paid their debt. We have another 300 law suits in progress, but they will be delayed due to the court holiday," Cutitei added.

Cutitei has discussed the matter with the management of GDF Suez Energy (formerly Distrigaz Sud) trying to convince them to resume methane gas deliveries. "As for resuming the methane gas supply, GDF said that the insignificant volume of daily collections, about 10-15,000 RON, was simply meaningless compared to the 12 million RON debt. This is why people should make an effort and pay their debt to CET. Concurrently, the Government is taking steps to disburse the subsidy for the fourth quarter ahead of schedule. The bottom line is that we will not have has in the near future, so we will not be able to resume the hot water supply, even to the people who have no debt to us," Cutitei added.

In mid-June, GDF Suez Energy announced firm intent to terminate the gas supply to CET Brasov as the total value of the debts had already exceeded 60 million RON. In addition to this debt, CET Brasov also owes 20 million RON to coal suppliers and 25 million RON to the fuel transportation company. Despite the enormous debts, CET Brasov only as 12 million RON in receivables from condominia in Brasov. Another 10 million RON in receivables was irrevocably lost when Tractorul and Rulmentul, two industrial customers in Brasov, were closed. When Tractorul was subsequently liquidated, CET Brasov got nothing.