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November 20, 2019
BUSINESS

Only minority stakes will be sold in energy companies, Nita says

The delegate minister of Energy, Constantin Nita said Friday, during a PSD debate on the ‘Romania’s Economic Recovery,’ that the government will sell only minority stakes in energy companies and that they can also operate efficiently with state management, Mediafax reports. “Many wonder if we will privatise the national energy system too. We will not privatise it completely. There are companies that were abused by some people, such as Hidroelectrica, Regia de Activitati Nucleare, the Hunedoara complex. (…)”, Nita mentioned.

Yet, there is something contradictory, because the commitments to the IMF and EC include the sale of majority stakes in several companies, also from the energy sector, such as the energy complexes Oltenia and Hunedoara or Electrica, as well as listing on the stock exchange minority packages in Hidroelectrica (10 pc, after it will leave the insolvency process), Romgaz (10 pc), Nuclearelectrica (10 pc) and Transgaz (15 pc). The Transgaz offer ended with the state selling its 15 pc participation against EUR 72 M.Nita added that the value of packages to be put on sale will be included in the share capital, in view of development. The minister mentioned that, from this point of view, Transgaz is an exception because the privatisation strategy was approved before the acting government came to power. “The energy industry will go through a difficult period. (…) We will have to take measures which will upset many people. The national energy system will be reorganised, like it or not. We are interested to have cheap energy and the market – if you look at the energy exchanges – brings prices to a certain level which all energy producing companies must reach, otherwise they will have to go out of business,” Nita added.

According to the official, as far as coal-based energy producers are concerned, it is to be seen if they will resist in the market.

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