“ANRE (Romania’s energy watchdog – e.n.) has promised to reduce Hidrolectrica’s electricity quota by one terawatt hour as of September 1,” said Remus Borza, general manager of Euro Insol.
Speaking in a news conference, Borza said that ANRE has also agreed to allow Hidrolectrica charge by 20% more for the electricity delivered to companies on the regulated market.
Last week, Euro Insol said Hidrolectrica obtained authorization in principle from ANRE to reduce deliveries through the regulated market while adjusting the sale prices to cover production costs.
Hidrolectrica receives 71 lei (EUR15.64) per megawatt hour for the electricity delivered through regulated contracts, well below its production costs, estimated at RON138 per MWh in 2012, Euro Insol said.
Hidrolectrica, Romania’s largest power producer, has filed for insolvency earlier this year and is currently undergoing reorganization. Last week, the company activated its force majeure clause on electricity deliveries for the second time in less than one year, due to a prolonged draught.
The company expects energy production will fall to an historic low of 700 gigawatt hours in August, well below the 1,100 GWh targeted.