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Romanian Social Democrats Consider Censure Motion Over Energy Holding Proj

Romania’s leftist opposition Social Democratic Party, or PSD, might file a censure motion against the executive unless the authorities reconsider setting up a national power holding, Deputy Iulian Iancu said Sunday.
Romanian Social Democrats Consider Censure Motion Over Energy Holding Proj
27 iul. 2008, 16:06, English

Speaking in a press conference, Iancu voiced his concern regarding the government’s initiative to build an “energy champion” by merging power suppliers and distributors Hidroelectrica, Turceni and Rovinari.

Iancu said the holding would have control over Romania’s energy market and would be able to impose high tariffs without having to answer to anyone.

The Romanian authorities plan to set up a vertically-integrated power holding to compete with major European utilities, such as Czech group CEZ AS (BAACEZ.PR) and Italy’s Enel SpA (EN), by merging its remaining state-controlled power suppliers and producers and putting a stop to some of its privatization plans.

Romania still retains control of power producers Hidroelectrica, Nuclearelectrica, Termoelectrica, Turceni, Rovinari and Craiova, as well as three power suppliers belonging to former monopoly Electrica.

The energy holding will be worth between EUR20 billion and EUR24 billion, with high return of investment, which is seen at EUR800 million by 2012, authorities said.