According to General Manager, Traian Oprea, the company maintained its activity between last year's limits by renegotiating contracts and raising the delivery price for some contracts, even if this year's drought forced production down by one fifth. "We are negotiating with several suppliers. We met our goal with Alro [ALRO Slatina, largest Central and Eastern Europe primary aluminum producer]. The price was raised, and we should receive the money tomorrow [on Wednesday]," said Oprea yesterday, at an energy seminar, without mentioning the percentage of the price rise.
Hidroelectrica's manager added that the company reduced its exports and deliveries to all suppliers. "Cut-backs began in June, and smaller quantities were established for the rest of 2007," Oprea said. He mentioned the company will provide 20 percent less electricity compared to contractual quantities to suppliers who have signed bilateral contracts with Hidroelectrica.
The National Administration of Romanian Waters (ANAR) is due to declare drought conditions for several internal rivers in the coming days, and Hidroelectrica will subsequently ask the Romanian Chamber of Commerce for permission to invoke the force majeure clause to end several contracts.
"We have just about finalized the documentation by which ANAR and the National Institute of Hydrology and Water Management (INHGA) will declare drought conditions for internal rivers," Oprea said.
Hidroelectrica is expected to invest some €1 billion in modern technology in the medium term. The company will also continue the privatization process of micro hydro-electric plants. Several medium-sized hydro-electric plants will be used to form mixed thermo-hydro entities with other energy producers.
Bonds
The state-owned company will issue bonds on the domestic equity market, with a 5-10 year maturity, before its listing on the Stock Exchange, forecast for 2008, and will develop energy production projects from renewable sources, according to the energy strategy of authorities.
