E.ON posts €190 mln total losses in Romania

According to Hajdinjak, the reason for these losses is the fact that certain expenses in the 2007-2009 period were not included in the rates approved by the Romanian Energy Regulatory Authority (ANRE). In this context, E.ON is on the verge of laying off up to 100 employees, following the departure of more than 1,000 employees from the group’s companies since the beginning of this year, as part of voluntary resignation programmes, run shortly after the privatization.

The official said that expenses not recognized by ANRE in the approved rates, as well as the economic downturn, led to the decline in scheduled investments by the German company in the local business.

“The decline in investments was of 40 percent in 2009, due to the economic crisis and unrecovered expenses. We are far below the optimal investment return target, and financing costs are now higher,” added Hajdinjak.

He indicated that Romania in now in a position where it needs investments badly, especially in energy infrastructure, but the country must “provide stability and a fair regulatory policy.”

E.ON plans to invest some €60 mln in 2010, according to Hajdinjak, an amount similar to that in 2009. The official expects 2010 to be a year as difficult as 2009, and is hoping for the 0.5 percent economic rebound forecast for Romania by the International Monetary Fund.

The official added that he does not see any signs of economic recovery or increase in the energy and gas consumption for industry. By the end of November, the decline in the national gas consumption was of some 15 percent and in electricity of 9.2 percent, according to data provided by the two state-owned transport companies, Transgaz and Transelectrica.