Euro Insol, the legal administrator of Romanian hydropower producer Hidroelectrica, on Tuesday will terminate the electricity sale contract signed with Galati-based firm Euro-P.E.C, which has debts of 37.8 million lei (EUR8.4 million) and has caused the producer losses of RON118.5 million.
Euro-P.E.C. is one of the ten firms that bought energy from Hidroelectrica through direct sale contracts, at prices lower than those prevailing on the market. The firm is 89% controlled by Marcel Adrian Comsa. According to reports in the press, Comsa is an associate of PDL deputy Mircea Toader.
In 2011, Euro-P.E.C. bought energy worth RON45.3 million from the hydropower producer, at an average price of RON141/ MWh, while the average price of electricity on the local exchange OPCOM was RON220/ MWh.
On Monday, Euro Insol informed Euro-P.E.C. about its debts to Hidroelectrica, which stood at RON30.2 million in the first six months, plus penalties of RON7.6 million. According to the notice, Euro-P.E.C. acknowledged a debt of RON19.4 million to the power producer, but made no commitment to pay.
Euro Insol stated that Hidroelectrica lost RON118.5 million between 2006 and 2012 because of its contract with Euro-P.E.C., for delivering energy cheaper than the average price on OPCOM.
In 2010, Euro-P.E.C. registered turnover of RON132 million, down from RON197.8 million in 2009 and RON270 million in 2008. Its pre-tax profit fell to RON1.48 million in 2010, from EUR8.1 million in 2009 and RON24.6 million in 2008. The company had 39 employees in 2010.
Romania’s Economy Ministry said Monday Hidroelectrica forecasts a negative cash flow of 1.4 billion lei (EUR310 million) for the whole of 2012, which results from a RON774 million deficit in the first half of the year, and of RON612 million in the second semester.
This would be the third year in a row when Hidroelectrica reports negative cash flow. In 2011, the company’s deficit was at RON659.2 million, double from RON309.3 million a year before.
Hidroelectrica has RON1.1 billion short-term debts, RON1.1 billion in other commercial debts, while long-term debts are at RON1.5 billion, according to the Economy Ministry, the main shareholder of the company. (EUR1=RON4.4652)