Speaking at a meeting with Romanian and foreign investors, Ponta said that although the International Monetary Fund and the European Commission had pointed at the noncompetitive practices at Hidroelectrica, no measure to terminate the company’s direct energy sale contracts were taken.
These bilateral electricity deals signed at below-market prices have caused losses of over EUR1 billion at Hidroelectrica since 2010, the prime minister said.
Hidrolectrica, Romania’s top energy producer, has filed for insolvency in June 20. The company is 80.06%-owned by the Economy Ministry. According to the government, the bankruptcy procedures would be used to cancel below-market bilateral energy contracts.
Economy Minister Daniel Chitoiu said last week the company could emerge from bankruptcy by the fourth quarter of 2012 at the latest. He added that Hidroelectrica is likely to terminate all remaining below-market bilateral energy contracts by the end of July.
The hydropower producer has so far terminated five such deals, signed with companies Euro-P.E.C., EFT, Alpiq RomIndustries and Alpiq RomEnergie.