CEZ Could Acquire CET - Galati By Year-End

The Municipality of Galati met with representatives of Czech-based energy company CEZ early this week to define the last details of the planned takeover of the Galati-based power company Electrocentrale by the Czech counterpart.

"Even though I cannot offer an exact date, I can guarantee you that CEZ could take over CET by the end of the year," said Dumitru Nicolae, Mayor of Galati. He took the opportunity to promise that, notwithstanding the change of ownership over Electrocentrale, the price for heating would remain unchanged.

Mayor Nicolae further explained that the sale of the heating plant located within the ArcelorMittal compound would rid the Municipality of a long-lasting problem that could jeopardize the heating supply to household consumers. "The largely overdue debts of Electrocentrale, currently standing at 1,800 billion old lei, will be wiped off," the Mayor added.

Mihai Popa, the leader of the Electrocentrale trade union, confirmed for BURSA that the two companies were going to associate, but did not know an exact date. either. "CEZ should invest in a 400 megawatt gas-powered turbine, while Electrocentrale will contribute the existing assets," Popa said.

In an earlier phase of the sale process, six bidders had expressed interest in buying CET - Galati: Gaz de France, Enel, Edison (Italy), AES (U.S.), ElectraBel (Belgium) and CEZ (the Czech Republic).

Located within the premises of the ArcelorMittal steel works in Galati, Electrocentrale is a local producer of heating and electric energy. The company has 443 employees and concluded last year with a turnover of 330 million RON and a profit of 4 million RON.