SNLO supplies lignite to the three stations, but the authorities have found problems with the arrangement, especially as regards cash flow, says the act.
Lignite reserves are enough for energy production for 35-40 years, says the ministry.
“It was observed that SNLO’s lignite production has always been correlated with the three energy producers’ real needs. (…) The new company will encourage the development of competition on the Romanian energy market,” says the act.
The ministry adds that the new company will invest in the rehabilitation of coal-fired power plants and the price of the energy it will produce will be “stabilized” at “a relatively lower level on the long-term, by increasing productivity.”
The Government’s initial plan was to merge the main energy and coal producers into two national companies, called Electra and Hidroenergetica, but this was hindered by legal issues. The Executive is now considering creating two smaller energy companies – the Oltenia Energy Complex and the Hunedoara Energy Complex – according to the letter of intent to the International Monetary Fund.
The Oltenia complex will be set up by the end of this year and privatized through an initial public offering or through a strategic investor by the end of June 2012.
According to the document, restructuring the units with a view toward privatization will entail layoffs; at least 900 jobs will be cut by the end of October, plus another 200 at Turceni.
The Hunedoara complex will be made up of the Paroseni and Mintia thermal power stations and the viable mines operated by national coal company CNH.