“We would be willing to declassify the contract with Hidroelectrica, but we won’t post it online. (…) We have sent this contract to all Romanian and international authorities that wished to see it, including the European Commission. We are willing to show it to the International Monetary Fund as well,” said Marian Nastase, Alro’s board president.
The company official added there are advanced negotiations with Hidroelectrica right now, and the price of electricity sold through the contract is linked to the price of aluminum on the London Metal Exchange.
Alro management is flexible in terms of renegotiating the price of Hidroelectrica energy, but not so much in terms of reducing the quantities delivered, Nastase added.
Romania’s Economy Ministry recently said it has failed to reach an agreement with the beneficiaries of the bilateral contracts signed with Hidroelectrica, and has called in the Justice Ministry to analyze whether the deals can be terminated.
“Most of the companies agreed to the reduction of the contracts’ length and quantity delivered, but were especially opposed to the third condition, raising prices. Romania aims to bring these contracts to reasonable terms,” said Economy Minister Lucian Bode.
Since the negotiations have failed, the documents have been sent to the Justice Ministry, which will analyze whether they can be terminated. The two ministries will issue a joint position on February 23.
Bode added he has a backup plan if the contracts cannot be cancelled.
The February 15 deadline for the contracts’ renegotiation was established through the letter of intent agreed within the latest IMF review, in January-February.
Hidroelectrica started concluding direct supply contracts in 2000, and half of these agreements were extended until 2018.
Companies having direct sale contracts with Hidroelectrica include Alro, Romania’s largest energy consumer, as well as traders Energy Holding, Alpiq RomEnergie, Alpiq Romindustries (former Buzzman Industries).