Romanian authorities to showcase plans for national energy company to Andris Piebalgs in Bruxelles

Romania's energy strategy which was endorsed at the beginning of September 2007 focuses on the set-up of a national energy company consisting of the power companies that belong to the state: Electrica Muntenia Nord, Electrica Transilvania Nord and Electrica Transilvania Sud.

The Prime Minister Calin Popescu Tariceanu, also present in Bruxelles, pledged the new company would comply with the legislation which separates production, transportation and distribution activities.

The newly-created company should be listed on the Bucharest Stock Exchange one year after it was created and should have a private board of shareholders in two to three years, when 55 percent of the shares will be sold. The new entity should have a capitalization of several billion euros and a huge investment capacity, Vosganian said in September 2007.

Lively debates over Bruxelles' plans to open the power market for competition are ongoing within the EU. The power market is currently dominated by big public companies in many of the large states such as France or Germany. Therefore, the EC wants to divide the electricity producing units from the transportation networks.

The reform of the power market targets to hike competition and investments in new transportation pipelines and energy networks as well as to encourage new entries on the market.

Source: NewsIn