English
• The reorganization of the company is getting complicated
• The energy system is not in danger
As if the insolvency wasn't enough, the heatwave is putting Hidroelectrica in an unprecedented situation, where it is going through the second year of hydrological draught.
Remus Borza, the head of Euro Insol, the receiver of the company which was recently declared insolvent, said: "We are considering, and we want to invoke once again the situation of force majeure in order to reduce the quantities of energy sold as part of the bilateral contracts. Over the last 22 years, Hidroelectrica has never faced two consecutive years of hydrological draught. There have been a few years of draught, but the company recovered in the following year. But now, last year's situation has extended. On this date, we estimate that the energy output of Hidroelectrica, will fall to about 3 TWh in 2012, from the approximately 16 TWh it reported last year".
He has admitted that the hydrological draught will complicate the reorganization of Hidroelectrica, but he said that there are solutions for seeing this plan through.
Remus Borza has referred to the covering of the costs from the regulated market and the significant increase of prices in the bilateral contracts concluded with private suppliers.
Octavian Lohan, the deputy general manager of Transelectrica, a company which is part of a company which controls the National Energy Dispatch (responsible with the functioning of the energy system and the management of crisis situations), said: "Indeed, the situation is not good, but we are keeping it under control. The situation did not take us by surprise. The National Energy System will be safe this summer, as well as this autumn and we are prepared to deal a lot better with the situation generated by the hydrological draught, which has also occurred in the first quarter of this year. The decision of the receivers of Hidroelectrica to review the possibility of invoking the force majeure clause is a good one, a cautious one, and the Ministry of the Economy and the energy producers are ready to prevent disruptions in the provision of electricity".
He has explained that at the moment, the storage lakes are 80% full (a very good percentage at this time of year).
But the throughput of the rivers is very low and the situation on the Danube isn't very good either.
Because, Lohan claims that Hidroelectrica must take the necessary steps to avoid depleting the water in the lakes quickly.
The reserve in the lakes is generating a total output of only about 2.8 TWh, with the bulk of the hydroelectric output originating from the main rivers, where the plants do not have storage lakes.
Octavian Lohan added: "For two months we have been preparing the winter schedule and we are setting up the fuel reserves which are mandatory for energy companies. We are constantly talking to avoid any crisis situation in providing energy during this extremely hot period, and in the winter time".
These excessively hot days have caused consumption spikes (especially in Bucharest, where the specialists of Transelectrica have estimated an hourly demand of approximately 1,250 MWh).
• Hidroelectrica has asked the increase of the regulated price
Remus Borza said that Hidroelectrica has asked the ANRE (the energy market regulator) to raise the price of energy delivered on the regulated market from 72 to 125 lei/MWh (the current output cost) and the reduction of the quantity intended for captive consumers from 5.5 TWh to 4 TWh.
According to Mr. Borza, the ANRE will take care to operate these changes, if it agrees to them, without raising prices for consumers on the regulated market (the population and companies). The receiver claims that the regulator of the market can do that, by implementing the first step of the liberalization process, where a certain percentage of the companies currently being supplied with energy now, in a regulated system, will be placed on the open market, and given the right to choose their own suppliers.
• The ANRE will not modify the regulated energy prices for this quarter
The management of the ANRE has simply said that the request of Hidroelectrica concerning the amendment of prices and quantities on the regulated market is an exceptional one and goes beyond the usual scope of the regulation.
• The ANRE officials claim that a decision on the matter will be made in September
This quarter, the regulated prices for electricity will remain unchanged.
Sources from the ANRE said that the authority is reviewing the opening of the market by an additional 15% (ed. note: several companies will be forced to abandon the low regulated prices and will be forced to choose their own suppliers) starting in September, in order to honor the request of Hidroelectrica, without amending the regulated price.
This week, Euro Insol is negotiating intensely with the so-called "clever boys" who have direct contracts with Hidroelectrica, concluded at prices of approximately 130 lei/MWh (which barely cover the production cost, which are approximately 125 lei/MWh). Remus Borza said that if the energy providers will not amicably accept price hikes and adjustments of the quantities of energy, the company will be forced to terminate their contracts and to sell the energy on the open market.
Euro Insol intends to conclude these negotiations next week.
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