BUSINESS

Transelectrica CEO:Electricity production up 11.3 pc last year

* In 2014 consumption grew by 2 pc year-on-year * Electricity exports were the highest in 10 years

 

According to Toni Teau, CEO of Transelectrica, the operator of the national electricity transmission system, in 2014 Romania’s electricity production grew by 11.3 per cent year-on-year and net consumption by 2 per cent to 53.5 TWh.

Teau added that electricity exports totalled 7.5 TWh last year, 3.5 times higher than in 2013 and the highest level since 2004. On the other hand, electricity imports totalled 1.4 TWh in 2014. Teau added that based on types of production, the biggest share was that of hydropower, covering 30.7 per cent of the total, followed by coal (26.1 per cent), nuclear (17.7 per cent), natural gas (11.9 per cent) and renewable energy (13.6 per cent). The company is state-owned, controlled by the Economy Ministry which owns 58.68 per cent of the shares, and is listed on the Bucharest Stock Exchange (BVB). Several companies own 34.31 per cent of Transelectrica shares and several physical persons own 7 per cent.

The Transelectrica electricity transmission operator (stock market symbol TEL) estimates growth in investments in 2017 and 2018, the financing solution preferred by its directorship being a new issuance of bonds.

In December 2013 the company attracted RON 200 M by issuing bonds. Transelectrica pays the investors an interest of 6.1 per cent per year for five years.

“In 2015 in order to finance investments we will give priority to the use of funds from the issuance of bonds. In the following years, if needed, we will resort to bank loans, loans from international financial institutions, but we should not forget that we still have a leftover of RON 700 M (from the bonds cap approved by the General Shareholders Assembly – editor’s note). From my point of view we would stake on issuance of bonds, because we would have lower volatility from the exchange rate and interest rate,” Transelectrica CEO Toni Teau stated.

 

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