Enron comes to Romania

US group Enron Corp., one of the world’s largest electric power producers, has entered a joint-venture with SNP (National Oil Company) Petrom, for electric power supplying, thus becoming the sixth independent supplier of electricity on the Romanian market.

The National Authority for Regulations within the Energy Field (ANRE) has already granted a functioning licence to the newly formed company Petrom-Enron Gas SRL.

“These are the first steps toward complete liberalisation of the electric energy market in Romania,” yesterday stated Alexandru Sandulescu, a director with ANRE.

A spokesperson of Enron Europe told Ziarul Financiar that the licence for electric energy supplying is merely the first stage in the development of the US group on the Romanian market. “Enron has big projects for Romania, which might materialise in some very large investments, including involvement in the privatisation of the electric energy sector,” the spokesperson says.

Enron is one of the world leaders within the domain of electric energy, as well as within the domain of natural gas and communications, holding total assets worth over 34 billion dollars.

So far, ANRE has granted distributing authorisations to Hidroelectrica, Alro Slatina, Grivco Energy, MD Trading 2000 SRL, CET Govora and Petrom-Enron. They are currently struggling to acquire 10 percent of the Romanian electric energy market. A company can become an eligible consumer if it posts annual consumption of 100 GWh, if it holds no debts to Electrica and if it makes proof of financial creditworthiness.

ANRE has so far authorised ten eligible consumers, commercial companies having the right to choose their own electricity supplier and at negotiable prices. The ten companies that have met ANRE criteria are Arpechim, Alro Slatina, Azomures Targu Mures, Automobile Dacia, RATB, Lafarge Romcim Medgidia, SMR Bals, Cimus Campulung, CNL Oltenia Targu Jiu, Exploatarea Miniera Jilt and SNP Petrobrazi.

According to ANRE officials, there are another 80 requests from the part of companies wanting to be granted a licence for electric energy supplying.