“Most of the companies agreed to the reduction of the contracts’ length and quantity delivered, but were especially opposed to the third condition, raising prices. Romania aims to bring these contracts to reasonable terms,” said Economy Minister Lucian Bode.
Since the negotiations have failed, the documents have been sent to the Justice Ministry, which will analyze whether they can be terminated. The two ministries will issue a joint position on February 23.
Bode added he has a backup plan if the contracts cannot be cancelled.
The February 15 deadline for the contracts’ renegotiation was established through the letter of intent agreed within the latest evaluation by the IMF, in January-February.
Hidroelectrica started concluding direct supply contracts in 2000, and half of these agreements were extended until 2018.
Companies having direct sale contracts with Hidroelectrica include aluminum maker Alro Slatina (ALR.RO), Romania’s largest energy consumer, as well as traders Energy Holding, Alpiq RomEnergie, Alpiq Romindustries (former Buzzman Industries).
At the end of 2011, Hidroelectrica terminated direct sale contracts with mining company SNLO, Salrom and CLMB Patinoar Brasov, while Luxten Lightning gave up the agreement “for image reasons.”