Romanian electricity producer Hidroelectrica complained about the company‟s near insolvency status, as a result of the emergency ordinance 114/2018 that compels the company to deliver certain amounts of electricity to household consumers at regulated prices set by the state.
Hidroelectrica‟s CEO Bogdan Badea said that the energy market regulator ANRE compels the company to buy expensive electricity from the market and sell it cheaply to the population, a practice that, in the past, already led to the company’s insolvency.
Badea responded to recent ANRE‟s decision, under which the provisions of the emergency ordinance are gradually lifted. Hidroelectrica and Nuclearelectrica are compelled to deliver 100 % of the needed electricity to households in January 2020, with the share decreasing to 80 % in February and gradually to 0 % by June 2021.
Hidroelectrica and Nuclearelectrica account for nearly 50 % of Romania‟s electricity production while household consumers account for less than one quarter of total consumption.