Romania: Hidroelectrica to charge higher prices under long-term contracts.

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The long-term contract beneficiaries of Romanian power generator Hidroelectrica have agreed to pay it 19-26% higher prices of RON 155-164 (EUR 36-38) per MWh and have also accepted to receive 10-20% lower supplies than agreed, daily Adevarul reported. Nonetheless, the justice ministry will announce on February 23 whether these long-term contracts, scheduled to expire at the end of 2018, can be legally terminated immediately.

Hidroelectrica’s minority shareholder the Property Fund and the IMF have urged the state-controlled company to terminate or significantly adjust the preferential terms of the contracts. Hidroelectrica was expected to deliver some 13TWh per year under long-term contracts at an average price of RON 130 per MWh, below the average wholesale price of RON 160 on the regulated market. The largest recipient of these contracts is aluminium producer Alro (3TWh per year). The customers’ list also includes several power traders. Steel manufacturer ArcelorMittal Galati benefitted from a medium-term contract with Hidroelectrica of 1.7TWh per year but the deal was not renewed in December.