Anca Boagiu accuses electricity suppliers of keeping CFR in a debt spiral

Newsroom 05/08/2011 | 17:03

Anca Boagiu, minister of Transportation and Infrastructure, declared in a press conference that the National Railway Company (CFR) will repay RON 130 million of debts to electricity suppliers, according to Agerpres newswire. Furthermore, the railway company will secure a loan for repaying the rest of the debt, thus reducing the arrears. According to Boagiu, CFR’s debt to electricy suppliers amounts to RON 1,983 billion, with penalties totaling RON 831 million. The minister considers that the current state of affairs is inadmissible and hopes for a successful renegotiations, as it was the case with the U.S Contractor Bechtel.

Boagiu alleges that energy suppliers (CEZ, Enel, Electrica and E.ON) do not want to cancel their contracts with CFR. Furthermore, the suppliers want to keep the railway company CFR trapped in debt for obtaining significant margins of profit. For instance, the production cost of one MWh is RON 146, while CFR has to pay RON 476 for it. Boagiu considers that energy costs can be reduced by 30 percent if the supply and acquisition of electricity is externalized. At this moment, the price for electricity triples from production to acquisition by CFR.       

Jan Veskrn, CEZ Romania president, declared in a press conference, on Thursday, that the total debt that CFR holds at CEZ Romania reached RON 274 million at the end of 2010. Under these circumstances, the Sales department of CEZ is facing liquidation

Ovidiu Posirca

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