Deputies rejected the creation of the National Energy Company

C.M.

The assembly of the Chamber of Deputies yesterday rejected, the creation, through an emergency government of the National Energy Company (CEN), approved by means of an emergency ordinance by the Tăriceanu government in October 2008. Deputies of the liberal party and those of the Democratic Union of Hungarians in Romania did not participate in the vote. The rejection is not surprising, as the current government is looking at a new strategy for the restructuring of the Romanian energy system, by creating two or three energy companies.

The National Energy Company was supposed to be created through the takeover of the shares that the State holds in the Turceni and Rovinari energy complexes, which are part of Hidroelectrica, by the Electrica energy company. The emergency ordinance was rejected by the Senate, the first of the two chambers of the Parliament that it was sent to, in February 2009. The ordinance was then rejected by the Economic Commission of the Chamber of Deputies. While deputies of the liberal party showed that the project made sense, as Romania needs a strong energy company, that can handle large investments, deputies of the Liberal Democratic Party and the Social Democratic party maintain that the National Energy Company would merge all the companies that produce cheap energy, creating a monopoly and therefore eliminating competition.

The current Government wants to have a minimum of two companies, with the same cost structure, which would both feature coal, gas, nuclear and hydroelectric energy production capacities.