While several years ago companies such as Energy Holding, Alpiq Holding, Alpiq RomEnergie or Alpiq RomIndustries reported robust increases, in 2013 these businesses nosedived.
Alpiq RomEnergie is now a business controlled by Swiss-held group Alpiq that maintains it operates in 23 states and has revenue of around EUR7.6 billion. In reality, Alpiq RomEnergie is the former EHOL Distribution, which sprang from Energy Holding, perhaps the best-known electricity trading company, set up by Bogdan Buzaianu, the godson of former industry minister Dan Ioan Popescu.
In 2010, the former EHOL Distribution is bought by Alpiq and renamed as Alpiq RomEnergie. In 2013, the company’s revenue reached EUR0.3 million and, according to Finance Ministry data, the company now has no employees. At the end of 2012, the company had over EUR184 million in revenue, 615 times higher than last year’s result. In 2008, for instance, the company’s revenue stood at EUR53 million.
The company’s representatives did not answer ZF’s request for information on these figures.
What’s certain is that many of the private businesses that emerged in the field of electricity trading relied on just one thing, namely acquisition contracts with state-run producers at preferential prices.
The perfect target for this type of contracts was Hidroelectrica, the producer of the cheapest energy in Romania, which in early 2014 went insolvent for the second time. The direct contracts between Hidroelectrica and companies such as Alpiq RomEnergie were the main cause why the state-run producer ended up in this situation.
In 2004, Hidroelectrica signed a contract with Energy Holding and in 2008 the latter ceded part of contracted energy to EHOL Distribution, which was subsequently taken over by Alpiq. The contract was cancelled, though, in late July 2012 once Hidroelectrica went insolvent.
Virtually, while in 2012 Alpiq RomEnergy still benefited from a quantity of energy at a preferential price, in 2013 the company no longer had access to the cheapest electricity in Romania and this could be one of the explanations for its steep revenue decline.
According to the document through which the contract between Alpiq RomEnergie and Hidroelectrica was cancelled, during 2008-May 31, 2012 period the company generated losses of above 427 million lei (around EUR97 million) for Hidroelectrica, with the sum being calculated depending on the gap between the price in the contract and the price the energy producer could have got had it sold energy on OPCOM bourse.
Alpiq RomIndustries, the company that is in fact the former Buzmann Industries, set up by the same Buzaianu, in its turn posted a significant revenue decline last year. According to Finance Ministry data, Alpiq RomIndustries in 2013 got to EUR73 million from almost EUR173 million in 2012.
Alpiq RomIndustries also had a contract with Hidroelectrica at preferential prices, which in 2006-May 31, 2012 period generated losses of RON422 million. In July 2012, this contract was also cancelled, by Euro Insol, Hidroelectrica’s legal administrator.
Energy Holding also saw its revenue plunge last year, to EUR83.5 million, from EUR144 million in 2012. The direct contract sealed with Hidroelectrica generated losses of RON1.4 billion in 2006-May 31, 2012 period for the latter.
The ranking of the largest private electricity traders is now dominated by Tinmar IND, which reached EUR385 million last year. Tinmar IND did not have any direct contracts signed with Hidroelectrica. The company’s largest clients include Dacia, Romania’s largest exporter, Kronospan or the plants of Interagro group, controlled by businessman Ioan Niculaie. According to the latest information, the company has over 350 clients.
According to ANRE data, the unregulated segment of the energy market in 2013 accounted for 24.8 TWh of energy, or almost half of Romania’s electricity consumption, which in 2013 contracted by around 5%. The quantity sold to this segment was around 1.2% smaller against 2012.
Tinmar IND representatives recently said an average price of around RON450 (EUR103) per MW for consumers on this segment can be taken into account. Considering the energy sold on this segment, 24.8 TWh, the value of the unregulated market can be put at EUR2.5 billion.
(English version by Catalina Apostoiu)