"Oltchim", once again at risk of its seeing its power cut off

• The County Council of Vâlcea, willing to help the plant

• Vulpescu, OPSPI: the huge debts are the result of management mistakes

The "Oltchim" Râmnicu Vâlcea plant may see its power cut today, after recently receiving an ultimatum from energy supplier "Electrica Furnizare". In order to prevent this from happening, the County Council of Vâlcea announced in a press release that the Electric plant will activate Ca new energy generation unit to supplement part of the electricity supplied by Electrica.

The notice from the energy supplier comes from the fact that Oltchim has not yet succeeded in achieving an output that would allow it to generate the money needed to gradually pay off its debts towards SC "Electrica Furnizare", the press release also states.

Remus Vulpescu, the head of the OPSPI, says that the accumulation by Oltchim of huge debts is the result of mistaken management policies, both from Oltchim, and its suppliers.

He said: "The privatization process will probably not be affected if a correct decision gets made on time concerning the management of Oltchim in this period, in agreement with the creditors as well".

Constantin Roibu, the general manager of the company, could not be contacted for a statement.

"Oltchim" owes over 150 million Euros to "Electrica" SA. In the beginning of the year, "Electrica" cancelled the contract for supplying electricity to Oltchim, and the distribution of power to the plant was taken over by Electrica Furnizare, a branch of Electrica.

In February, Electrica got a ruling from the court which allowed it to require Oltchim to pay off its debt of 666.5 million lei, but the decision was overturned by the Court on May 14th.