Romanias Hidroelectrica close to renegotiating major power sale contracts.

By bne IntelliNews April 23, 2012
Romanian state-owned hydropower company Hidroelectrica is close to completing the preferential contracts negotiations with its major customers and will most likely terminate most of the deals, "possibly 90% of them," according to unofficial sources quoted by Ziarul Financiar daily. The daily calculated that the preferential contracts with politically-connected customers have generated losses of EUR 1.5bn for Hidroelectrica over the past 10 years. An IMF expert team visiting Romania has estimated that the company loses EUR 175-275mn per year currently as a result of the preferential contracts. The Fund and the company's minority shareholder, the Property Fund, have urged Hidroelectrica's management to terminate the contracts or negotiate higher prices. The contracts expire in 2014, 2015 or 2018.
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