Hidroelectrica informed its shareholders that the energy regulator ANRE issued a decision obliging it to sell, between March 1, 2019 and December 31, 2019, a total of 1.63 million Mwh of electricity to final suppliers at the regulated price of RON111.61 per MWh.
The energy quantity Hidroelectrica must sell at the regulated price represents 9.7% of its electricity output in 2018.
The energy regulator’s decision was issued to implement provisions of government emergency decree 114, which caps energy prices and sets additional taxes for the electricity and telecom sectors, as well as a tax on the financial assets of banks.
FP owns 19.94% of Hidroelectrica’s share capital, representing 39.30% of the Fund’s net asset value at the end of January 2019.
Based on this latest information, the fund manager will further analyze whether any adjustment of the Fund’s net asset value is required, Franklin Templeton said in a statement.
The fund manager has been planning to sell the fund’s stake in Hidroelectrica for some time but this decision requires the agreement of its main shareholder, the Romanian government.