“They (e.n. EFT) were willing to find an amiably and fair solution, came with an improved price offer which unfortunately was not very close to the market level. Their offer was better than two months ago. In the end we (e.n. Hidroelectrica) will probably get a better price than the market’s. We proposed some terms that will probably be accepted,” according to Remus Borza, the head of Hidroelectrica’s liquidator, Euro Insol.
On his turn, Hidroelectrica’s special administrator, Remus Vulpescu, said there are still “different opinions.”
“They (e.n.EFT) claimed we called them to terminate the contracts (…). The persons who came today were not authorized to sign legal documents (…) and had a flight at 15:00 local time,” said Vulpescu.
Vulpescu recently said the beneficiaries of the direct contracts with Hidroelectrica buy energy at last year’s prices, since this year they refused to renegotiate the fees except if the company guaranteed a fixed price in lei for the duration of 2012, which was “much lower” than the one on energy exchange OPCOM.
The contracts were signed in 2001-2003 and expire in 2014, 2015 and 2018.
Vulpescu added that Romanian legislation states, since 2006-2007, that energy must be sold exclusively through OPCOM.
The companies that last year had the largest contracts with Hidroelectrica are Alro (322.47 million lei – EUR72 million), Energy Holding (RON280.25 million), Alpiq RomEnergie (RON204.34 million), ArcelorMittal Galati (RON185.46 million), EFT Romania (RON136.68 million), Alpiq RomIndustries (RON130 million) and Electromagnetica (RON124.95 million).
EFT is wholly-owned by Danish company EFT Holdings.
Hidroelectrica, Romania’s largest energy producer, went insolvent on June 20. The board said the decision was prompted by Hidroelectrica’s lower turnover and rising debts, following a “managerial disaster” and drought in 2011.
According to the company’s balance sheet, net profit fell 45 times last year, from RON292.3 million to RON6.4 million, as total revenues decreased from RON3.41 billion to RON3.18 billion, while expenses increased from RON3.02 billion to RON3.14 billion.
Hidroelectrica’s administrator, Euro Insol, recently announced that it would attempt to renegotiate the direct sale contracts amicably, but that they would be terminated if the beneficiaries refuse the new conditions.
Last year, the power producer axed its contracts with Salro, CNH and CLMB Patinoar Brasov, and was dropped by Luxten. Last week, Hidroelectrica terminated its agreement with Euro-P.E.C. Galati, over debts of RON37.8 million and a contract that caused the producer losses of RON118.5 million. (EUR1=RON4.5142)