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Energy Minister: discussions with EC on approving the state aid for Hunedoara Energy Complex (CEH) are lengthy
The discussions with the European Commission on approving the state aid for Hunedoara Energy Complex (CEH) are lengthy, and solutions do not come from a man's pen or changes to the legislation, as it happened in the previous years, Energy Minister Victor Grigorescu told a Monday's debate on national energy strategy.
Asked whether it is possible for the DG Competition delegation of the European Commission, which will come to Romania to analyze granting potential state aid to CEH, to reject the reorganization plan, Grigorescu replied: "The discussion with the European Commission is lengthy."
The minister could not give a timeframe for completing these discussions.
"It happens also in other companies that are in similar situation. We do nothing else than taking it step by step. When we reach the end of this process, after a fair and a well-substantiated analysis, we will have a conclusion," added Grigorescu.
In late May 2015, the Government approved an emergency ordinance for granting individual state aid totaling 167 million lei to save CEH, which needs the approval of DG Competition in Brussels.
Earlier this year, the Competition Council Chairman Bogdan Chiritoiu told a press conference that the authorities in Brussels had demanded the separation of energy production activity from the mining one of CEH.
"At the end of the restructuring period, the complex will remain much smaller, but it will be functional, will operate on its own," added Chiritoiu.
The official receiver of CEH, GMC SPRL, is proposing in the report on the causes of insolvency, offsetting the debts to the Romanian state, through the Ministry of Public Finance, by taking over the mines in the account of the liability, to an amount resulting from an evaluation report.
CEH debts amount to 1.5 billion lei, including 1.2 billion lei to the Ministry of Public Finance, according to the aforementioned report. The Hunedoara Tribunal pronounced the company insolvent on January 7.
On Monday morning, 25 union leaders of CEH's thermal power plant of Mintia began a hunger strike in front of the headquarters, while more than 100 employees were protesting in the courtyard. They demanded the resignation of the company's management, whom they blame for the insolvency.
One union leader asserted that a major cause of disgruntlement was the March 17 unilateral termination of the collective agreement by the insolvency company in charge of the management. Power plant employees want temporary layoffs extended to the company's mines.
Energy minister sees no political solution for Hunedoara Energy Complex
Saving the Hunedoara Energy Complex (CEH) does not involve any political decision; technical solutions can only come from within the company, Energy Minister Victor Grigorescu declared on Monday.
"Two things are important to me: the existence of a report on the causes of insolvency, and my encouragement to the official receiver to carry out its work, taking the measures consequent to the conclusions identified down there (...) This report follows an analysis of the company's documents, a very concrete analysis, the minister said in a debate on Romania's energy strategy.
Coal is vital for the national energy security, he added.
As regards the proposition made by the official receiver to erase CEH's debts, Georgescu avoided a direct answer. "It's premature to pronounce," he said, acknowledging the bad management and poor decisions in the past.