Our loss-making energy giants versus their profitable giants

Electra and Hidroenergetica, the two giant companies through
which Romanian authorities are trying to reorganise the national
electricity generation system, starting 2012, when the first
regional expansion intentions may materialise, will have to battle
foreign groups with a profitability rate as high as 30% and with
already developed operations from the US to Russia. “As they lack
an investment force comparable with that of other European energy
companies, these companies will be able to enter regional
competition, not to mention the European one. Therefore, the issue
of these companies being created too late does not really exist,”
believes Mihai Mares, managing partner of Garrigues Romania law
firm. According to him, the only strength of this reorganisation
plan will be the creation of two companies with a large production
capacity, which will also have a greater force to negotiate with
private investors in various public-private partnership projects.