Romanias Hidroelectrica invokes emergency situation, cuts power deliveries.

By bne IntelliNews September 28, 2011
The state-controlled operator of Romania's large hydropower plants, Hidroelectrica, invoked the force majeure clauses in the bilateral, long-term contracts with all its clients and will adjust its deliveries consequently, Mediafax and Ziarul Financiar announced, quoting the company's management. The power utility delivers some 30% of the country's electricity, 40% of which is generated in the large-size Iron Gates plant on the Danube. Some 70% of the electricity, generated by Hidroelectrica under normal circumstances, is delivered under bilateral contracts. Hidroelectrica cited the low water levels in the dams as the reason for the disruptions. The necessary permits were obtained for all the 41 contracts. Currently, the company can deliver 63% of the electricity, stipulated in the contracts, and it expects the ratio to reach 90% by the end of the year. Among the largest customers are aluminium producer Alro, steel mills ArcelorMittal and power traders like Energy Holding and Alpiq. The emergency situation might remain in force during the entire Q4, the company's management commented. Hidroelectrica's management estimates that the coal-fired plants will be able to offset the decline in hydropower production and eventually Romania will not import electricity. The coal mines have already received more orders from the power plants.

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