Steel maker ArcelorMittal Galati has unilaterally denounced the electricity supply contract with state nuclear producer Nuclearelectrica (SNN), which was set to expire this September.
“SNN informs that energy transactions scheduled between April 1 and September 30 2014 based on the contract that was unilaterally denounced by ArcelorMittal, concerning 595,920MW valued at RON 107.5 million (EUR 24 million),” said the company in a statement submitted to the Bucharest Stock Exchange (BVB). Nuclearelectrica operates two nuclear reactors at Cernavoda that cover around one third of Romania’s electricity consumption annually.
According to Agerpres newswire, electricity prices on the spot market have been low in recent period, reaching an average of RON 133.19 per MW in March on OPCOM.
Arcelor was buying electricity from Nuclearelectrica at RON 181 per MW as part of the contract that was signed in February 2013. At that time, market prices hovered around RON 230 – 250 per MW.
Shares in Nuclerelectrica were flat at RON 9.3800 on Tuesday afternoon (14:51) trading on the BVB.