Telekom Romania concerned about RCS&RDS expansion into electricity distribution business

By bne IntelliNews August 18, 2015

The head of Telekom Romania Nikolai Beckers has questioned whether its rival, RCS&RDS, has permits for the development of the electricity distribution networks currently underway in Constanta and several other cities in Romania.

Quoted by Ziarul Financiar daily, Bekers wondered “why the state is not doing anything [to stop this]”.

The statement came after Bekers complained about the “bureaucracy, incompetence and inertia” that hinders the development of infrastructure works in Romania.

Telekom Romania is developing a broadband network for remote areas, under a project financed by some €80mn from the EU budget. The deadline, at the end of this year, is at risk due to the large number of permits the company had to collect, Bekers explained. The government would have to return the money to the EU budget in this case, he added.

Bekers was particularly concerned regarding the expansion of RCS&RDS into the electricity distribution market. “It is going to be a brutal surprise for the electricity companies when RCS&RDS starts actively selling”, Bekers warned. The company is targeting not office buildings but residential areas, he added.

RCS&RDS earlier announced plans to expand into the electricity distribution business. “There is no competition [on the electricity distribution market], it was like the telecom market was 15 years ago,” the development manager of RCS&RDS, Valentin Popoviciu, said in April at a conference.

The electricity distribution market in Romania is liberalised, and users have a choice and we want to be an alternative, he said at the time.

Related Articles

Hungarian PM's "proxy" moves into the nuclear industry as Paks tenders approach

Firms controlled by Hungarian oligarch Lorinc Meszaros have purchased a 51% stake in the Hungarian subsidiary of Czech nuclear ... more

CEZ set to place Czech nuclear assets in new unit

Czech state-controlled energy group CEZ is set to place all nuclear-related activities into a new division, local media reported on May 17. The move raises speculation that the company is ... more

TAP suspends work on Albania pipeline after uncovering ancient settlement

Trans Adriatic Pipeline (TAP) AG company, which is in charge of the construction of the TAP gas project, has temporarily suspended works on the pipeline near the Turan village in Korca in the ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Dismiss