Bloomberg News

Hidroelectrica to Eliminate Some Fixed Energy Prices

May 18, 2012

Hidroelectrica SA, Romania’s state- owned hydro-power generator, will eliminate some fixed prices for the energy it sells through bilateral contracts to some companies such as Alro SA. (ALR)

Hidroelectrica is re-negotiating the power-supply contracts as requested by the International Monetary Fund and will introduce “competitive” prices, Economy Minister Daniel Chitoiu said during a conference in Bucharest today.

The IMF and the European Union have asked Romania to renegotiate Hidroelectrica’s contracts after the EU competition regulator started an investigation into possible state aid on selling power at below-market prices. The Balkan nation secured a 5 billion-euro ($6.35 billion) precautionary loan from IMF and the EU to shelter itself from the European debt-crisis.

“We plan to complete the negotiation with the companies that buy electricity from Hidroelectrica by the end of May,” Chitoiu said. “We are negotiating the prices and bring them to the current market levels, the quantities of power delivered and the time period of these contracts.”

To contact the reporter on this story: Andra Timu in Bucharest at atimu@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


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