FP: Hidroelectrica lost 200m euros from direct contracts

Greg Konieczny, manager of Fondul Proprietatea (Property Fund – FP), minority shareholder in the most valuable energy companies in Romania, says Hidroelectrica, the biggest local electricity producer, lost between 600 and 850 million lei (143-202 million euros) in earnings in 2009 alone because of the company’s ongoing direct contracts. The list of buyers of hydro-energy through direct contracts are Alro, Romania’s biggest energy consumer, Energy Holding, a company set up by Bogdan Buzăianu, the godson of former industries minister Dan Ioan Popescu, Energy Financing Team, Alpiq Romenergie (formerly EHOL Distribution, part of Energy Holding bought by the Swiss at Apliq) and Alpiq Romindustries (formerly Buzmann Industries).

“In the first half of 2010 the lost earnings amounted to 100 to 300 million lei (24 to 71 million euros). These are just losses from direct contracts,” said the representative of FP, which holds 20% in Hidroelectrica.

Hidroelectrica representatives had not commented on the figures provided by FP by edition close. At the beginning of the 2000s, the state-owned company sealed a series of long-term direct contracts, some of which were extended last year until 2018, at much lower prices than those paid on the OPCOM energy exchange. On the other hand, Hidroelectrica representatives recently said OPCOM was not a reference because of the low volume of trading, with the company’s policy being the only one that can ensure low prices for individuals and the functioning of the free energy market.