EXCLUSIVE New secret contracts for the sale of energy

"Hidroelectrica" is not the only electricity producer owned by the state that has contracts to supply energy which lack transparency. Secret contracts also exist in energy complexes of the Valea Oltului region, even though, back in 2008, the Ministry of the Economy issued an order that required all energy producers to sell their energy on the OPCOM market. Except that these contracts of the energy complexes they are concluded with eligible consumers, not by direct negotiation with private suppliers, like in the case of "Hidroelectrica".

"Complexul Craiova" sold 45% (1.43 million MWh) of the energy delivered on the first nine months to such consumers. Constantin Bălăşoiu the managing director of the company, explained: "We did not infringe on the order of the Ministry of the Economy by concluding these contracts because we answered to selection procedures organized by eligible consumers. I can"t tell you the names of those consumers, or the terms of the contracts we have with them, but I can tell you that the price that we sell the energy for in these contracts is a very good one, an average of 200 lei/MWh".

He said that the last two years have been difficult for energy producers, as total consumption has decreased 10%, and consumers pressured prices: "With such an energy surplus, competition between producers and suppliers became fierce and we haven"t been able to sell energy for the long term, on the centralized market managed by OPCOM, especially since compared to Rovinari and Turceni, "Complexul Craiova" has a higher production cost. We then chose to focus on making competitive offers to eligible consumers, which can"t participate in the auctions of the OPCOM anyway".

Complexul Craiova provides these consumers with all the services that they need, including balancing".

The managing director of "Complexul Craiova" says that it is precisely these services that allowed its company to find buyers, especially since it is competing with suppliers that also produce hydroelectric energy.

The Turceni and Rovinari complexes have also signed contracts with eligible customers, although in a lesser number, even though the officials of the two companies did not provide any details on this subject. Thus, "Complexul Turceni" delivered 15%, (approximately 667,000 MWh, of the energy sold during the first ten months through bilateral contracts concluded on the open market), and "Complexul Rovinari" - delivered approximately 27%, 963,000 MWh, respectively (ed. note: the officials of the two companies did not disclose the value of the contracts which were concluded in a non-transparent manner).

The data published by the OPCOM concerning the Centralized Market for Bilateral Contracts (PCCB) sheds a little more light on these percentages. The PCCB host the auctions held by producers to sell their energy. In 2010, "Complexul Rovinari" succeeded in selling about 367,000 MWh, and the "Turceni Complex" - sold almost 46,000 MWh. In 2010, "Complexul Craiova" did not award any contracts on the PCCB, but it will try its luck for 2011 in the coming days.

The only producer that concluded no contracts with the eligible consumers is "Nuclearelectrica". According to data provided by the company, 34.5% of the energy delivered in the first nine months, represents bilateral contracts concluded on the open market, including on the PCCB and PCCB-NC (transparent markets managed by OPCOM). Out of those contracts, 16.4% are negotiated with producers directly and represent reciprocal help contracts, which only come into effect during the time when one of the nuclear groups of Cernavodă is shut down for maintenance and repair.

Also, the 16.4% include the contract that "Nuclearelectrica" SA concluded with "Transelectrica" for the latter to supply the energy needed for its own consumption in the 400 KW station of Cernavodă and for the consumers of the Cernavodă platform.

The Association of Romanian Electricity Suppliers (AFEER) considers that producers should comply with the orders of the Ministry of the Economy and auction off all the energy available on the OPCOM market.