On December 1, 2011, Hidroelectrica initiated negotiations with all bilateral contract beneficiaries, in view of increasing prices and reducing deliveries and timeframes.
“Some of the companies accepted the increase of purchase prices, others agreed to the increase of prices and reduction of volumes. There were some that accepted only a minute increase in prices,” the sources said.
For some of the contracts, the sale prices went, after negotiations, to 155-164 lei/Mwh (EUR35-EUR38), compared to an average RON130/MWh before, while volumes were decreased by percentages between 10% and 20%.
The renegotiation of bilateral contracts and the lawful termination of the non-renegotiable ones, were requested by the International Monetary Fund, or IMF.
The deadline set by the IMF for the completion of renegotiations was February 15, but talks had not been completed by that date. As such, the Economy Ministry, majority holder within Hidroelectrica, asked the Justice Ministry to look at the documents in view of termination possibilities.
According to the sources, the contracts were sent to the Justice Ministry at the request of the IMF, even if the beneficiaries accepted the conditions imposed by Hidroelectrica.
“The call on the Justice Ministry was not cancelled, but it is separate from the renegotiations unfolding between the company and the beneficiaries,” the sources said.
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).