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Bucharest
August 15, 2022
BUSINESS

Hidroelectrica reorganisation: No sale of assets, jobs will be secured

The reorganisation of Hidroelectrica company, which entered insolvency last week will be conducted without selling assets, while assuring the stability of jobs and maintaining all the right of employees, under an agreement concluded Friday by the Ministry of Economy (MECMA) – the majority shareholder in Hidroelectrica, the Hidrosind trade union branch in Hidroelectrica, the Office for State Interests and Industrial Privatization (OPSPI), Hidroelectrica and the judiciary administrator, Mediafax reports. “MECMA warns over the following issues: no action aimed at estranging dedicated assets of the National Energy System are either considered or promoted, no mechanism aimed at diminishing the electricity production will be promoted, and no mechanism aimed at selling the shares held by the Romanian state in this economic operator will be promoted,” reads a MECMA press release. According to the ministry, the reorganisation is meant to increase the economic efficiency of the electricity generation process, develop the unused hydropower generation potential, and attract private capital in development and new technology projects, as well as diversifying and better using the provided system services.The ‘Univers’ National Federation of Trade Unions in the Electricity Industry seeks an urgent meeting with the representatives of MECMA, over the measures that will be adopted in view of increasing the operational efficiency of Hidroelectrica.In a press release issued Friday, the Federation mentions that it “took act with concern” of the fact that the court approved the demand submitted by the company Board to enter insolvency through judiciary reorganisation. Trade unionists inform the ministry that the want the termination of the electricity sale contracts signed by SC Hidroelectrica SA with the so-called “smart guys” of the industry, which they consider as “onerous contracts of upgrading” of the generators installed at the Iron Gates 1 and Iron Gates 2 hydropower plants and on the Olt River, and of other similar contracts which only added extra burden to the company, as some of the production facilities that received new technology stopped operating. According to the company’s accounting documents, the net profit dropped 45 times last year, from RON 292.3 M to RON 6.4 M, while total incomes dwindled from RON 3.41 bln to RON 3.18 bln, and expenses advanced from RON 3.02 bln to RON 3.14 bln.

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