The European Commission (EC) has temporarily approved an aid package worth RON 167 M (approximately EUR 37.7 M) offered by Romanian authorities to the Hunedoara Energy Holding (CE Hunedoara).
According to the EC experts, the state aid is in line with EU norms (see the 2014 guidelines on the rescuing and restructuring of companies in difficulty). The aid is limited to the sum needed by the Hunedoara energy holding in order to continue to operate its electricity plants in the next six months and to pay its creditors.
Moreover, Romania has taken the commitment to present a restructuring plan meant to ensure the future viability of the Hunedoara energy holding in case the company is not able to reimburse the rescue aid after the six months expire.
Hunedoara energy holding is a Romanian producer of electricity and heating, based in Petrosani, Hunedoara County. The company has a market share of approximately 5 per cent on the electricity market and approximately 6,500 employees, being the biggest company in Hunedoara County. As a public utility, the Hunedoara energy holding has the obligation to supply heating to households in Deva and in cities located in the Jiu Valley area.