E.ON continues local investments: EUR 95 M in 2014


Last year, E.ON Romania, subsidiary of German utility company E.ON, reported a consolidated turnover lower than in 2012, of RON 4.65 billion (EUR 1.05 million), primarily because of a diminished volume of traded gas and electricity, according to the date presented yesterday by Frank Hajdinjak, company manager, at a press conference. E.ON Romania’s profit last year was well under the level of 2012. Nevertheless, the German group subsidiary will increase its investments in Romania this year to RON 406 million (EUR 95 million).  “We have decided to increase investments because we realized it was necessary,” Hajdinjak said. Last year, E.ON companies invested a total of RON 369 million (EUR 83 million) in Romania, and are planning to invest RON 406 million (EUR 95 million) this year, particularly in the area of modernizing networks. Hajdinjak pointed out that E.ON has invested a total of RON 5.2 billion (EUR 1.1 billion) in Romania since Electrica Moldova was privatized in 2004, and contributed EUR 1.2 billion to the state budget. E.ON Romania has estimated a higher turnover for this year, given the on-going deregulation process of energy and gas markets. However, the volume of gas and energy traded this year will be lower than in 2013.
“The deregulation is happening too fast. Deregulation can be positive on the long term, but it is too fast. Consumers are dying. The deregulation process should be stopped,” Hajdinjak stated. He added he has no problem with the state protecting large consumers from the effects of energy and gas price deregulation, but underlined SMEs will be severely impacted. E.ON Romania would have to pay RON 40 million in special construction taxes this year, Hajdinjak emphasized.
Representatives of the German investor have also announced the company would not go through with investments in an 800 MW thermal power plant in Braila. The project, worth a total of EUR 1.4 billion, was scheduled to be carried out together with Enel and Termoelectrica, but has been cancelled due to unfavorable market conditions. Last May, Hajdinjak had stated the thermal power plant construction project would not stand a chance without state aid.  In February, E.ON purchased several shares packages owned by Electrica SA at several subsidiaries of the German company at EUR 31.5 million, according to a press release issued by the German company. As a result of this decision to purchase, E.ON Romania currently owns 53.38 percent of E.ON Energy Romania shares and 68 percent of E.ON Moldova Distribution shares.

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