Power unions win appeal to stop creation of state energy giants

State hydro company Hidroelectrica union Hidrosind has won a trial against the creation of two state energy giants, Electra and Hidroenergetica, after the Bucharest Appeal Court rejected the government’s project to set up the two companies

May 2011 - From the Print Edition

Currently Romania’s state-owned energy production estate is separated into hydro, nuclear and thermo power companies – Hidroelectrica, Nuclearelectrica and Termoelectrica.
The Government’s plan was to bundle thermo power plants, mining companies, nuclear power and some hydro power plants in one company, Electra.
There would have also been a second company – Hidroenergetica – which contains further thermo power plants, the remaining hydro plants and the National Coal Company.
However the Bucharest Appeal Court stated it would be illegal to split Hidroelectrica in two.
Last month Romania’s Ministry of Economy has announced it will start the procedures to privatise the management to a quarter of its state-owned companies in May, the critical mass of which are in the energy sector.
Economy minister Ion Ariton has said he is convinced that the privatisation of the management will bring better economic results and will increase the trust of investors interested in major Romanian energy infrastructure projects.
These plans include a 1.2 billion Euro project to build a 1,000 MW load-balancing hydro power station in Tarnita-Lapustesti, Cluj county, which is looking for a strategic investor.
Romania’s Economy Minister has struggled for two years to reorganise the energy sector by setting up the two energy giants.
However the plan was greeted with derision by the market, which saw it as an attempt by profitable energy companies Hidroelectrica and Nulcearelectrica to bank-roll the loss-making coal-mining the stagnant thermo power sectors.