Romanian Pvt Auth Head Invites Hidropower Unionists For Talks

Atanasiu invited at around 12:00 PM (local time) the 20 union leaders for talks, according to Hidrosind’s president Ilie Rosu.

Hidrosind unionists decided to protest on Wednesday and Thursday in front of the headquarters of AVAS and the National Liberal Party against the set up of the national power holding.

On Thursday, the unionists will organize a protest movement in Victoriei Square in the capital city Bucharest.

Hidrosind’s leaders said they will attack in court the recently enacted Government emergency ordinance on the setting up of the national power holding and will make criminal complaints against AVAS president Teodor Atanasiu, Economy Minister Varujan Vosganian, Justice Minister Catalin Predoiu and Prime Minister Calin Popescu Tariceanu.

Rosu said Tuesday that the setting up of the integrated energy holding will lead to the annulment of Hidroelectrica’s activity and a 20% higher household energy price in 2009.

Through their protest, the unionists hope to convince Tariceanu to withdraw the normative act. Otherwise, the protesters say they will “be forced to continue their street protest movements and even to resort to a general strike" in order to keep their jobs.

Two weeks ago, the Government decided through an emergency ordinance to set up the integrated power holding.

Hidrosind rejected many times the setting-up of the new power holding that would unite Romanian state-owned power grid Electrica, state-run hydropower generator Hidroelectrica and thermal power producers Turceni and Rovinari.

Subject to the draft, AVAS will take over from Romanian Ministry of Economy and Finance a number of 361.98 million shares in power producer Hidroelectrica, at 10 lei (EUR1=RON3.5909) each.

The share capital of state-owned power grid Electrica will be hiked through AVAS’ in-kind inflow, namely the stakes in Hidroelectrica and thermal power producers Turceni and Rovinari.

Electrica will issue in turn new shares to be given to AVAS.

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.

The authorities plan to privatize the company by listing a significant stake on a stock exchange in the next 3 to 5 years, the value of the stake put up for sale in public offer being estimated at around EUR4-6 billion, according to the normative act.

Mircea Geoana, the president of the Social-Democratic Party, said Tuesday in the country’s southern city of Craiova, that the party he represents and the Conservative Party will appeal the government ordinance at the Constitutional Court, mentioning that the “disguised purpose" of this decision is Hidroelectrica’s privatization through the stock exchange.
 

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