BUSINESS

Hidroelectrica wins last litigation with former traders

In a communiqué remitted to Nine O’Clock, Hidroelectrica emphasizes that on June 8 the Bucharest Court rejected the appeal filed by energy trader Alpiq Romindustries against the decision taken by EURO INSOL, Hidroelectrica’s trustee in bankruptcy, to denounce the electricity sale contract between Hidroelectrica and Alpiq Romindustries. The Bucharest Court has also forced Alpiq Romindustries to cover the legal expenses. At this moment all appeals filed by energy traders against the measure to denounce the contracts have been rejected by the Bucharest Court. Sixteen of the original 75 litigations are still ongoing. They consist of appeals against the preliminary list of creditors, against the force majeure decision of 2012 and demands for the payment of damages.

EURO INSOL tried to renegotiate all bilateral contracts in force at the time of the procedure, in order to align to market conditions the electricity sale price stipulated by the contracts, the latter being two-times lower than the market price. The contracts signed with energy traders caused a damage of over EUR 1 bln from 2006 to 2012, representing the difference between the market price and the sale price stipulated by the contracts signed with energy traders.

The contract with Alpiq Romindustries was denounced by the trustee in bankruptcy on 01.08.2012, for generating losses of RON 422 M in 2006-2012 alone.

An energy quantity of 7.2 million MWh was made available by denouncing the contracts signed with the energy traders, a quantity of energy that Hidroelectrica would have had to supply at prices below production costs until 2018, thus registering annual losses of over EUR 70 M.

By selling at market prices the quantity of energy thus made available, Hidreoelectrica registered supplementary revenues of approximately EUR 230 M from September 2012 to December 2014.

 

 

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