Romanian Govt OKs National Power Holdings Setup

The Romanian government approved the reorganization of the energy sector by creating two national power holdings which include almost all the state-owned assets in the field, people close to the matter told MEDIAFAX Friday.

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The information was confirmed by the government officials in a press briefing at the end of the Cabinet meeting.

Economy Minister Adriean Videanu said that the government decided to change the name of one of the future companies from "Energetica" to "Hidroenergetica" for "continuity and credibility" reasons. The other company will be named "Electra".

Videanu said the country needed two big energy companies, comparable by size and structure with companies in the region, as the country does not have conditions for real market competition yet.

The minister said the setup of the two power companies would not increase energy price, but the market would fluctuate up or down.

Electra will include some of the largest thermal power plants, the two operational reactors at the country's sole nuclear power plant in Cernavoda, the brown coal company SNLO, and a few hydropower plants.

The other national company will be formed by joining most of the hydropower production, the pitcoal company CNH, and other thermal power plants.

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