The data published by the Finance Ministry shows that Energy Holding posted about EUR8.1 million losses and EUR176.3 million in revenue in 2011, after ending 2010 with EUR3.6 million in net profit and EUR154.3 million revenue.
Early in 2004 the company struck a deal with Hidroelectrica, the cheapest electricity producer in Romania, enabling it to buy power directly for ten years at a fixed price. At the end of 2009, the Energy Holding-Hidroelectrica contract was extended until 2018. Therefore 2011 becomes the first year after the signing of the direct contract with Hidroelectrica when Energy Holding ended in the red.
Energy Holding is not the only company part of the club of so-called ‘smart guys’ who buy power at preferential prices directly from Hidroelectrica to have trouble, as Euro P.E.C, filed for insolvency. Hidroelectrica, the ‘crown jewel’ of the Romanian government is now insolvent, as well.
(English version by Loredana Fratila-Cristescu)