E.ON Romania Could Fire 1,700 Staff Over Low Energy Prices

„The long-delayed price increase will have serious impact on both E.ON and other companies (…). It’s possible that E.ON’s companies in Romania will lay off 1,700 employees,” E.ON Romania CEO Frank Hajdinjak told MEDIAFAX.

He said the layoffs could go on in 2011 and 2012 as well.

Earlier this week, the energy regulator ANRE said energy prices will remain at their current levels until January 2011, but natural gas prices might be adjusted for the 2009 inflation sometime this year.

„According to our calculations, natural gas prices should rise by over 17%, because we currently sell below cost,” Hajdinjak said.

He added a price increase as of April 1 seems unrealistic and stressed tariffs should go up at least 5% in the near future.

The German company started operations on the Romanian market in 2005, after it bought state-owned electricity producer Electrica Moldova and gas distributor Distrigaz Nord.

End-2009, E.ON’s companies in Romania employed 7,400 staff. The companies supply natural gas and electricity to over 2.7 million Romanians.