CET Govora produces thermal power for clients in Ramnicu Valcea town and for chemical producer Oltchim Ramnicu Valcea (OLT.RO).
According to the government representatives, the move would be necessary ahead of CE Oltenia privatization, otherwise the company might have to cease coal deliveries to CET Govora, jeopardizing the thermal power distribution to population and important clients such as Oltchim Ramnicu-Vâlcea.
CE Oltenia holding was found in 2012 following the merger of mining company Societatea Nationala a Lignitului Oltenia and thermal power producers Turceni, Craiova and Rovinari.
Under a EUR2 billion loan agreement with the International Monetary Fund, Romania has pledged to sell 15% in CE Oltenia by October 2014.