Veolia Energie Prahova
Statement
Veolia Energie Prahova announces the termination of the Delegation by Concession Agreement, based on which it provides heating supply services to Ploiești Municipality. The early termination shall have no impact on the habitants of Ploiești, in terms of hot water supply and heating during the upcoming winter.
Despite the significant financial losses registered every month, Veolia Energie Prahova will ensure the continuity of the hot water and heating supply to the inhabitants of Ploiești, even after the 90 days as set out in the contract, with the agreement set to cease on 31.03.2022, when the cold season is deemed legally closed.
The decision comes in a context of accelerated deterioration of the financial situation of the heating network concession, of a rate which does not evenly remotely cover the costs of provision of the public service, and a massive increase of the gas prices worldwide, all of these putting the hot water and heating provider in an unsustainable situation.
This lack of financial balance is due to the failure of local authorities to fulfil their contractual obligations, including failure to settle timely payment of the outstanding subsidy or failure to approve the rate adjustment in due time. Veolia has notified local authorities this morning, as per the termination clause of the contract.