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January 17, 2022
BUSINESS

Hidroelectrica tells the ‘wise guys’: Cheap energy back on after May 1

Hidroelectrica has notified its contract partners that the force majeure situation activated end of September 2011 would cease on May 1, after which date it will be able to supply electricity ‘according to the usual schedule’, reads a release of the Ministry of Economy, the majority shareholder in the company. ‘Hydrological conditions have improved both on the Danube and inland rivers and the forecast for monthly and seasonal average flow rates in a natural regime (…) is slightly favourable for May 2012’, reads the document. The company activated the clause because it had no sufficient water to generate power in its hydro-power plants, so it had to curb power supply to all its contract partners.Hidroelectrica supplies almost 70 per cent of the power it produces to the ‘wise guys’ (companies engaged in direct low price purchase agreements with Hidroelectrica), whose contracts are due to expire in 2014-2018. At the end of last year, the Government started to renegotiate those agreements, on the request of the International Monetary Fund. The state wants a higher sale price for Hidroelectrica power, a reduced maturity of agreements and smaller quantities of energy per agreement. The latest information is that the outcome of the renegotiation is due to be made public in a matter of days. The company has been often criticised, by President Traian Basescu included, for having concluded those agreements because of the low selling price to ‘wise guys’.

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