National Energy Company Project Becomes More Clear

The Government"s emergency ordinance for the establishment of the National Energy Company (CEN) only refers to the way in which the State"s shares in Hidroelectrica, Turceni and Rovinari are going to be transferred to Electrica. The act does not contain any provisions regarding the future operation of CEN on the energy market or regarding the relationships between the companies comprising it. Both energy market players and regulators have already expressed concern with this situation. The State Asset Recovery Authority (AVAS) believes that the future operation of the company is neither unclear nor kept a secret because the ordinance establishing CEN and the substantiation note attached to it contain clear provisions about how the CEN should operate on the energy market. The answers given by AVAS to Bursa"s questions indicate that the emergency ordinance does not change anything about the operation of the companies included in CEN on the energy market, as transparency of transactions must be ensured irrespective of the projected change. Hidroelectrica, Turceni and Rovinari will remain independent from Electrica within the CEN. The only changes affecting them concern the registration of the new majority shareholder, Electrica SA. AVAS officials explained: "These companies will retain their legal status. Each of them will have their own organization, their own assets and their own objectives, as per their respective act of incorporation. Their rights and obligations will remain as such, irrespective of possible changes in the shareholder structure". AVAS added that the substantiation note of the emergency ordinance clearly stipulated the obligation of the companies included in CEN to use transparent free market mechanisms. "Moreover, the trade of electric energy on the centralized market will be performed through the adoption of the common order of the minister of Economy and Finance and the AVAS CEO, based on the provisions of the emergency ordinance. Thus, market liquidity and energy security will be ensured. The mandate of the representatives to the Electrica general meetings will also be issued by the common signature of the minister of Economy and Finance and the AVAS CEO," AVAS officials added. The opinion of the AVAS management regarding the provisions on the future operation of CEN does not coincide with that of energy regulator ANRE as ANRE President Nicolae Opris recently told Bursa that ANRE was waiting to actually see how CEN was going to operate in order to take special monitoring measures. The private operators on the energy market also have questions about the behavior of the future integrated entity, but declined comment on the matter.