The privatisation of companies in the electrical power sector is a necessity, as the Romanian authorities feel, yet the process has to be done by attracting foreign capital to support the major investments required by the sector. sleadendt
“It is not about us gaining too much of this privatisation, it is about reducing the budget’s financial effort required to upgrade the system,” Industry and Resources minister Dan Ioan Popescu said.
He explained that the linking of the national energy system (SEN) with that of the EU (UCTE) would result in the survival of those units that produce energy at competitive costs only.
Three units of the Rovinari thermoelectric power station will be closed down soon, with another 500 Mw unit to be built by a public-private partnership. The Turceni thermoelectric power station will find itself in the same position, as it will operate with three upgraded units and a new unit built by the same type of partnership.
Each of the two is now operating with six energy-producing units.
Popescu also specified he was considering the possibility to close down part of the units at the Doicesti, Borzesti and Braila thermoelectric power plants.
He added 4,600 Mw in energy-producing capacities had been shut down over the last few years, because they were producing too expensive energy.
Transelectrica’s general manager Jean Constantinescu said that linking the SEN to the UCTE would boost the market value of the Romanian companies and make them more alluring to potential investors.
Transelectrica has invested approximately $126 million to upgrade and consolidate SEN’s transport and operation system since 2000 in order to bring it up to the UCTE standards, as part of a $426.5 million programme scheduled for completion by early 2005.
Termoelectrica in its turn has invested approximately $32 million for the same purpose, while Hidroelectrica has allocated $14 million.
The Industry and Finance Ministry representatives need to find a common solution to the budgetary debts of the companies in the energy industry and present it to the Government next week, the Industry minister says. “We have to see what steps can be taken so that the 55% component of the thermal power cost that has to be paid by the local authorities could be covered(…) It is not normal for the national energy system to subsidise the local administrations just because bills happen to be paid a few months late,” Dan Ioan Popescu said.
He added every unit in the energy system had to try and work out its problems, while the Industry Ministry’s job was to ensure production of electrical and thermal power at the lowest possible prices.
Dan Ioan Popescu explained the energy production price had gone down from $48/Mw to $39/Mw over the last two years. He mentioned that the price at which Termoelectrica was selling thermal power in Bucharest was of 600,000 ROL/Gcal, 200,000 ROL/Gcal less than the benchmark price for the entire country.