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The electricity grid of the country needs investments between 10 and 30 billion euro for modernisation and extension
The electricity distribution grid of Romania needs investments of 10 billion euro to be renewed and 30 billion euro for extension, stated Adrian Borotea,manager of Group Strategy in CEZ Romania, in a conference in the domain.
According to him, with the help of the regulator, the distribution companies need to prioritize the invested sums, in accordance with the decision of the shareholders so that the quality of the service improves.
‘To allocate capital, the shareholders select the projects which offer them higher remuneration.And so there is competition between the activities. I don’t want to say that CEZ will invest less, far from me this idea, but I want to say that there is harsh competition in the disposal of money, equity namely, to the projects with bigger money, taking into consideration that CEZ and the other big operators of distribution are on the stock exchange, and the shareholders,the consultants,the analysts are very careful’ Borotea said.
He said that CEZ Romania tripled the investment plan immediately after privatisation and assured that the level of investments in the distribution grid in Oltenia will continue to be an ambitious one.
The Czech group of utilities CEZ bought the supplier and the electricity distributor Electrica Oltenia in 2005. The distribution company is named Distributie Oltenia and provides the electricity supply for 1.4 million clients out of seven counties: Dolj,Arges,Olt, Gorj, Valcea, Mehedinti and Teleorman.