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May 10, 2021

Oltenia Energy Holding sacks 2,000 employees

The Oltenia Energy Holding has laid off approximately 2,000 employees this year, who received up to six average gross salaries as severance, while another 1,070 persons were outsourced, so that the energy producer now has 15,400 employees, Mediafax informs.

The number of employees dropped by 1,070 after the outsourcing of the Berbesti Quarry, and another 1,945 employees left the company as a result of restructuring in June.

Energy holding representatives pointed out that no other layoffs are expected this year.

“The lowering of expenditures on personnel will contribute to the growth of the company’s profitability and economic efficiency. The resizing of the labour force in relation to the volume of production will lead to the growth of labour productivity from 658 MWh/employee in 2014 to 771 MWh/employee in 2015,” the company shows.

Company representatives state that the actions meant to enhance operational and financial performance were called for given the current economic environment in which renewable energy producers have influenced the drop in energy prices on the internal market as a result of the subsidies they benefit from in line with the legislation.

Renewable energy producers “are only interested in obtaining the green certificates – a fact that determines a rise in the final price for the consumer,” the state-owned company’s leadership states.

According to the aforementioned source, the measures taken by the company were also called for given the existence of a major imbalance between the energy holding’s production capacity and the coal-based energy sales on the market, but also given the expenses on purchasing carbon dioxide certificates, expenses incurred as a result of the hiking of the certificates’ price and of the quantity that has to be purchased following the elimination of the free quota allocated, in line with European Directives.

The Oltenia Energy Holding, which owns coal mines in Oltenia and the thermal power plants in Craiova, Turceni, Rovinari and Braila, has 15,400 employees and covers over 20 per cent of Romania’s electricity production.

The holding was set up in 2012 through the merger of the Turceni, Craiova and Rovinari energy holdings with the Oltenia Targu Jiu National Coal Company. The company has 13 energy groups that total an installed capacity of 3,900 MW and is controlled by the state, through the Energy Ministry.

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