Gov't envisages new strategy for Hunedoara Energy Complex

Romanian Government adopted the Emergency Ordinance on the legal framework for granting a RON 40 million (EUR 9 million) loan, in market conditions, to the Energetic Complex Hunedoara, by the State Treasury, through the Ministry of Public Finance.

Energy minister Andrei Gerea announced in a press briefing the repeal of the privatization strategy, taking into consideration the recent developments, the economic situation, the complications, the lack of interest of potential investors and the government’s intention to grant the rescue aid approved by the European Commission. “The intention of the Government to provide rescue aid for Hunedoara Energy Complex involves a commitment taken at the time of notification to the European Commission that this Complex will be divided into components of mining and energy, otherwise the aid won’t be granted. This is the reason why, obviously we could not continue on this path of privatization strategy with all components of the Energy Complex.”

The RON 40 million loan will be granted for a period of 90 days and is meant to pay the illegal state aid granted to Hunedoara Energy Complex under the form of bilateral agreements concluded in the period 2009 – 2011 between Paroseni Power Station and Hidroelectrica, on the sale and the purchase of electric energy. The European Commission decided this year on April 20 that this aid should be recovered by the Romanian state.

The state aid was approved by the European Commission. In April the European Commission also approved the rescue aid for Hunedoara Energy Complex, yet in addition, Romania has committed to submit a restructuring plan. According to the European Commission press release on April 21, “temporary rescue aid of RON 167 million (approximately EUR 37.7 million) to be granted by the Romanian authorities to Hunedoara Energy Complex, the state-owned electricity and heat producer in Romania, is in line with EU state aid rules”.

Laura Grigore