“Sometime soon after Easter we will probably make an announcement. Negotiations are nearing completion,” Suciu said.
The bilateral deals in question were negotiated directly between Hidroelectrica and the beneficiaries, dubbed “wide guys”, and they come with very low, non-competitive, prices for the electricity delivered.
On December 1, 2011, Hidroelectrica initiated negotiations with all bilateral contract beneficiaries, in view of increasing prices and reducing deliveries and timeframes.
The renegotiation of bilateral contracts and the lawful termination of the non-renegotiable ones, were requested by the International Monetary Fund, or IMF.
The deadline set by the IMF for the completion of renegotiations was February 15, but talks had not been completed by that date. As such, the Economy Ministry, majority holder within Hidroelectrica, asked the Justice Ministry to look at the documents in view of termination possibilities.
The contracts were sent to the Justice Ministry at the request of the IMF, even if the beneficiaries accepted the conditions imposed by Hidroelectrica, people close to the matter told MEDIAFAX recently.
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 Alro (ALR.RO), Romania’s largest energy consumer, as well as traders Energy Holding, Alpiq RomEnergie, Alpiq Romindustries (former Buzzman Industries).