RSS
Economy minister: Three Hidroelectrica contracts left to be re-negotiated
The re-negotiations of the bilateral contracts of hydro-electric power producer Hidroelectrica will go on for three of them, in the industrial sector, Economy Minister Daniel Chitoiu said after the Government's meeting on Wednesday.
'The biggest loss-incurring contracts were renounced; three contracts in the industrial sector are left to be re-negotiated, with these to be renounced or re-negotiated in accordance with the market conditions: the re-negotiation of price, deadlines, quantities', Chitoiu said.
The three contracts are closed with Alro, Electrosid and Electrocarbon, he added.
'The latter two get energy at the 2010 prices, of some 100-101 lei a megawatt. It must be re-negotiated at the market price', Chitoiu stressed.
The minister added the criminal inquiry bodies will be notified by the judicial manager in the case of the fraudulent contracts.
'The judicial manager is the only one entitled to notify the criminal inquiry bodies where the contracts were fraudulent. There also are acquisition and investment contracts', Chitoiu said.
PM Victor Ponta: All Hidroelectrica bilateral contracts have been terminated
Hidroelectrica bilateral contracts have been terminated, announced on Wednesday Prime Minister Victor Ponta, at the beginning of the Government meeting. 'News from Hidroelectrica are very good. What neither former government, nor the president who boasts on TV, failed to succeed, we did. All bilateral contracts have been terminated', said Victor Ponta.
The Executive's head has stated that losses from those contracts amount to 1.5 billion euros. 'The fact is we ceased to lose more than 1.5 billion euros based on some Videanu's signatures, decisions. Everyone said that we will also fail, too', Ponta added.
Hidroelectrica denounced contract with Energy Holding
Hidroelectrica on Tuesday denounced its business contract with energy trader Energy Holding and the company will be analysing the legal means to react to this decision, Hidroelectrica receiver said Tuesday.
'The decision to denounce the contract came after more then seven months of negotiations, in which time Energy Holding proved good faith in meeting all the demands of Hidroelectrica. Although the negotiating team of Hidroelectrica changed at least three times during the seven months and negotiations always resumed from scratch, the Energy Holding officials proved flexible in accepting the modifications in the essential parameters of the contract: price, duration and quantity. We will manage the ensuing situation and contain the impact of the Hidroelectrica's decision on our business partners. Energy Holding is currently looking into all the legal means to react at the decision,' Hidroelectrica reports in a press release.
On July 20, Hidroelectrica announced it was denouncing contract with Swiss energy trader Alpiq, with the denouncement to come into effect on August 1.
Two days previously, Hidroelectrica denounced two other bilateral contacts, one with Energy Financing Team and one with EuroPec.
The Bucharest Tribunal on June 20 sustained Hidroelectrica's request for insolvency. The company had requested insolvency on June 15, 2012, and chairman of the company's administration board Remus Vulpescu said the opening of the insolvency procedure in Hidroelectrica's case is not designed to bankrupt or nationalise the company, but to reorganise the cash-strapped company.
Shareholders in Hidroelectrica are the Romanian Government, via the Ministry of Economy, Trade and Business Milieu, with an 8 80.0561-percent stake and the Fondul Proprietatea sovereign fund.