Romanian Energy Sector Is Obsolete And Inefficient – Watchdog Pres

„The energy system is obsolete, with losses especially in the transport and distribution networks, low yields and high debts, there were unsuccessful privatizations and an abuse of non-transparent contracts,” Lificiu said during a seminar on the reorganization of the electricity production.

According to Lificiu, Romania „re-launched the energy reform,” adding the privatization should have started with the production, and not with the power distribution companies.

The government’s plan to reorganize Romania’s energy sector is to create two national power holdings including several assets within the energy sector. The authorities also plan to support private investments in energy production.

Thus, half of Electrica, two of the hydropower plants operated by Hidroelectrica will make, next to power producers Turceni, Rovinari and Craiova, 1st and 2nd nuclear reactors with Cernavoda power plant and Romania’s state-owned brown coal mining company – Societatea Nationala a Lignitului Oltenia, or SNLO, the first company.

The other half of Electrica next to the largest part of Hidroelectrica’s assets, including the largest Romanian hydropower generator Portile de Fier, the country’s pitcoal mining company CNH, thermal company ELCEN Bucuresti, Deva and Paroseni, as well as hidro-power plants Caransebes, Hateg, Arges, Cluj, Bistrita, Sibiu, Sebes, Buzau and Targu Jiu will make a second company.

Economy Minister Adriean Videanu, also present at the seminar, said the energy production yield is 20% lower than the European average.

Romanian authorities are currenty drafting the normative act setting up the two national power holdings. The draft may be submitted to the Government in October.