Electrocentrale Craiova has serious operational problems. Olguţa Vasilescu: Desperate efforts are being made to get through the winter
The thermal energy producer Electrocentrale Craiova has serious financial and operational problems and desperate efforts are being made to get through this winter, stated the mayor of Craiova, Olguța Vasilescu.
Mayor Olguța Vasilescu says that Electrocentrale Craiova has big problems. Archive photo
“What is happening now at Electrocentrale Craiova is the result of mocking the people of Craiova for years, as a result of the lack of allocation of money for repairs. Electrocentrale Craiova separated from CEO Olteniaa company based in Târgu Jiu and which, at least in the last 10 years before the separation, did not make any investment that would reduce pollution or lead to the normal operation of the 50-year-old installations. (…) Electrocentrale Craiova has serious financial and operational problems, desperate efforts are being made to get through this winter, and the City Hall of Craiova is going to develop a new production capacity, for which it has already taken all the necessary legal steps, because where the Government is not interested in its own companies, we had to find another solution“, writes Vasilescu, on Tuesday, on Facebook, after the city was left without heat due to a breakdown at both energy groups.
Electrocentrale Craiova, subordinated to the Ministry of Energy, entered insolvency last year.
“The Minister of Energy requested by memorandum, in the summer of 2025, an aid of 350 million lei, to be paid from the company's debts, debts also owed to the state, for the CO2 certificates, and to be able to make the necessary repairs for the winter. It's just that Prime Minister Bolojan opposed the allocation of this amount. Why? Ask him! Thus, capital repairs could not be made to the two energy groups. From the beginning of winter, one group falls down and goes into repairs, as much as possible, carried out with its own employees, and the production goes to the other group. Which lasts a day or two and after it also falls, it is switched to the other repaired one. This winter there were two situations when both broke down and it was interrupted for a period longer than a few hours“, claims the mayor of Craiova.
Olguţa Vasilescu states that the municipality has started the steps to build its own power plant.
“If you are wondering what the mayor's office is doing… First of all, it wants Craiova to stop being captive to a company that is insolvent. The reason why he purchased a plot of land behind the Electrocentrale so that he could use the utilities in its yard, he is making a PUZ so that he can build a new power plant, he has submitted all the necessary documentation to TransElectrica for ATR to be able to produce energy and is waiting for the approval, he has drawn up the documentation for the tender, which would have been uploaded to SICAP by now, if ANAP had not selected the procedure for checks. That's how it is in Romania! When you have an emergency situation, another institution comes to put the brakes on! It is certain that this year, this winter, we still have to work with Electrocentrale Craiova and pray that at least one group out of the two will survive. All the politicians you see cursing the City Hall these days know that the City Hall is not responsible and they are the same ones who voted against the land acquisition and all the steps we took in the City Council to develop a new production capacity“, says Olguţa Vasilescu.
The municipality wanted to buy the heating assets
In July 2025, the City Hall of Craiova sent a letter of intent for the purchase from Electrocentrale of the assets necessary for the production of the thermal agent: the land, constructions and technological installations related to the transportation system of the thermal agent currently owned by the company.
A year ago, the current management of Electrocentrale Craiova abolished the position of production director, and the panelists – operators in the control room (boiler and turbine) – resigned en masse.
The general director of Electrocentrale Craiova, Lorena Voican, declared then that a change was made in the organization chart as a result of the ordinance and the address of the ministry of reorganization at the company level.
Insolvency at Electrocentrale Craiova
Electrocentrale Craiova was making a loss, like all coal-fired power plants, because more than 50% of the costs go to CO2 certificates, and the Oltenia Energy Complex was making a profit because it received state aid of over one billion euros in three years. Electrocentrale Craiova SA officially entered the general insolvency procedure. The decision was taken by the Dolj Court, which admitted the request made by the company. The next court date was set for March 2026.
Electrocentrale Craiova SA was established on September 30, 2022, following an outsourcing of the energy production activity within the Oltenia Energy Complex (CE Oltenia). The division was part of a restructuring and decarbonization plan, aimed at making the activity of the thermal power plant more efficient and facilitating the attraction of European funds (eg PNRR) for modernization. At the time of the separation, the company took over the plant's assets and operational infrastructure, related personnel and a significant portion of the liabilities resulting from CET's historical operations.
Electrocentrale Craiova produces electricity for the national energy system and thermal energy for the centralized heating system of the municipality of Craiova. The company provides heating and hot water for more than 46,000 apartments, public institutions, schools, hospitals, economic agents and technological steam for the Ford Otosan plant.
The company operates under the authority of the Ministry of Energy as a state entity and plays a strategic role in the energy and heating system of the region.
