“The Commission found that the contracts were either concluded on market terms or, where tariffs were below market level, that the Romanian state could not be held responsible for the tariffs granted,” the EC said in a statement Friday.
In particular, the analysis revealed that Hidroelectrica charged prices that were fully in line with the benchmark market price to nine customers (ArcelorMittal, Alro, Alpiq RomEnergie, Alpiq RomIndustries, EFT, Electrica, Electromagnetica, Energy Holding, Euro-Pec).
According to the statement, the prices charged to Luxten-Lighting, Electrocarbon and Elsid were lower than the benchmark market price. However, the investigation did not establish that the decision to grant favorable conditions to these relatively minor private players can be attributed to the Romanian authorities. The Commission therefore concluded that none of the sale contracts under examination involved state aid.
The contracts investigated by the Commission target 12 private buyers, including eight energy traders and the largest electricity consumers in Romania, namely, aluminum smelter Alro and steelmaker ArcelorMittal. Most contracts investigated by the Commission had been concluded before Romania’s accession to the European Union in January 2007. Only one of these contracts is still valid.
The Bucharest Court rejected on June 8 the appeals filed by energy traders against the termination of contracts concluded with state-owned power producer Hidroelectrica, the company said Thursday.
Hidroelectrica entered insolvency in June 2012 after it sold electricity outside the energy exchange at prices below market levels. The company was court-ordered into a second insolvency process in February 2014, less than eight months after completing a one-year reorganization process.
Romania agreed with the International Monetary Fund and the European Commission to list a minority stake in Hidroelectrica.
Hidroelectrica, Romania’s largest power producer, is 80% owned by the Economy Ministry and nearly 20% by investment fund Fondul Proprietatea.