According to Hidroelectrica’s administrator, Euro Insol, the energy deal with Alpiq RomIndustries caused the company losses of RON422 million (EUR92 million) between 2006 and May 31, 2012. The deal with Alpiq RomEnergie, caused the company losses of RON427.2 million (EUR93 million) between 2008 and end-May 2012.
Chitoiu said Hidrolectrica has terminated three such bilateral contracts so far, with the companies Euro-P.E.C. and EFT.
He also said Friday the energy company is likely to terminate all remaining bilateral electricity deals signed at below-market prices by the end of July.
Hidrolectrica, Romania’s top energy producer, has filed for insolvency late last month, citing weak financials because of a prolonged drought. The government said bankruptcy procedures would be used to cancel below-market bilateral energy contracts signed in the early 2000s.
According to Chitoiu, Hidrolectrica incurred total losses of around 4.5 billion lei (EUR1.3 billion) because of unprofitable contracts through which it has delivered electricity to over a dozen of companies, including steel maker ArcelorMittal Romania and aluminum smelter Alro. (EUR1=RON4.5848)