Romanias Hidroelectrica to terminate emergency situation in May.

By bne IntelliNews April 25, 2012
Romania's major hydropower company Hidroelectrica will terminate the emergency situation enforced last September due to low water levels in its dams and will consequently resume power deliveries in line with its contractual obligations as of May, news agency Mediafax quoted a press release of the economy ministry as saying. The company has operated at 50-60% below its normal capacity since last fall. The water flows of the Danube and inland waters have improved and the forecast is encouraging, therefore normal deliveries will be restored as of May 1, the ministry said. Hidroelectrica produces some 30% of the country's electricity in normal years. As much as 70% of it is, however, delivered to politically-connected customers under preferential contracts, which are currently subject to fierce negotiations. Much of the rest of the electricity is delivered at even lower prices on the regulated market. The IMF and Hidroelectrica's minority shareholder, the Property Fund, have urged the company's management to stop the loss-making controversial contracts. Unofficial sources say that the undergoing negotiations might result in the termination of most of the contracts.
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