Rovinari Energy Complex turnover drops due to EU pollution regulations

Laurentiu Ciurel, the company’s General Manager, told Business Standard that all three thermal power plants in Oltenia are assigned a lower number of depletion rights and the authorities are trying to identify solutions by assigning depletion rights from less pollutant thermal power plants.

According to Ciurel, buying depletion rights for EC Rovinari will double megawatt production costs. The European Commission decided to lower the gas depletion quota by 20 percent, affecting the energy industry and other sectors, such as metallurgy, cement and glass. “We can expect that companies operating in these domains will lose some of their financial power,” according to a statement for Business Standard by Environment Minister Attila Korodi.

The decision to reduce Romania’s depletion quota will influence production costs. “None of the energy producers has prepared to buy depletion rights and if the authorities do not increase depletion quotas for 2008, the price of electricity will explode in the second half of the year,” said Ciurel.

Dumitru Cristea, General Manager of Turceni Energy Complex, said he plans to spend €2.04 million to buy depletion rights.

Ion Ungureanu, Termoelectrica's General Manager, said he is trying to get European funds for his company in order to meet European standards.