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March 2, 2021
BUSINESS

Videanu: Alro to receive energy at price pegged to aluminium listing

A memorandum drafted by the former minister of Economy, Adriean Videanu, and countersigned by the prime-minister Emil Boc, declares the aluminium industry a national priority and compels the state company Hidroelectrica to provide energy to Alro Slatina at a price pegged to aluminium listings on the stock market, Money.ro reports. To justify this measure, Videanu invokes a practice which, he claims, is the norm elsewhere, namely, that aluminium producers should benefit from 75 per cent hydropower, the cheapest kind, out of their total consumption. According to Videanu, state backing in this sector would result in direct investments, into the Romanian economy, of approximately EUR 500 M in the following three years.


The government’s memorandum came into force on January 29, 2010, and, based on it, Alro is granted a preferential contract with Hidroelectrica until 2018, according to the energy-producer’s current director, Mihai David, who will be replaced from office on the first day of 2011. According to David, tagging the price of the energy that Hidroelectrica delivers to Alro to the price of aluminium would have been beneficial for the state company, which would have made an additional RON 47 M in the first ten months of 2010. Although the aluminium industry is declared a national priority, it is not included in the export strategy, whence metallurgy, oil and the chemical industry are also absent, but which features IT and ecological agriculture.

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