Former directors of Hidroelectrica sued

Hidroelectrica judiciary manager, Euro Insol company, ask the stockholders to approve a state court action against former directors of the company, through which will be recovered Hidroelectrica damage.

The power producer owned by the economy ministry became insolvent on June the 20th and since then is in judicial administration of the company Euro Insol.

The company recorded big losses due to preferential sales of energy, mismanagement, and a prolonged drought.

Hydropower is in a process of restructuring and work re-evaluation, a complex measure that included nearly three months ago the terminated contracts with so-called "smart guys in power".

We would have expected that after this radical decision to relocate the electricity market. Why it did not happen tell us the energy analyst, Gabriela Moroianu, Energy Focus Director.

The energy analyst Gabriela Moroianu, Energy Focus Director, says that some contracts were terminated, not all.

"They disbanded six contracts, from ten," the analyst said.

Moroianu Gabriela said that on the energy market nothing happened because of the drought that, practically annulled the beneficial effect of abolishing contracts with "smart guys".

"These contracts were supposed to release an amount about 5 terawatts of energy per year.

"Well, this quantity we will not get and that's because it did not rain, and Hidroelectrica, a company that in an average year hydrologic produces around 17 terawatts, or if you want 17 million megawatts, this year seems that will not produce but 12 terawatts.

"Basically, the same amount that was withdrawn from the "smart guys", said the energy analyst.

Gabriela Moroianu added that the effect of eliminating contracts with the "smart guys" will be visible when it rains.

"Obviously, when it rains, I know, next year, two years, only then we will feel the positive effect of canceling the contracts with the "smart guys", more or less because the price of electricity will be to rise, given that so far, in one way or another, has been kept artificially on hold.

"The first increase has already occurred by 5 percent and by 2018 there will be periodic such increases," said Energy Focus Director.

The price increase calendar of the electricity was agreed with the International Monetary Fund and the European Commission.

Translated by Alexandra-Diana Mircea
MTTLC, Bucharest University