Romania: State to sue Enel for breaking the privatization contract

27. May 2016. / SEE Energy News

Enel has the majority 64.42 % stake in each of these two companies, while the state holds 23.57 % of the companies’ shares. The remaining 12 % of the shares is held by private investment fund Fondul Proprietatea.

The Romanian state is planning to file a lawsuit against the Italian energy group Enel for failing to fulfill all the terms in the privatization contract of Electrica Muntenia Sud.

According to the EU law, Enel had to split the company into Enel Distributie Muntenia and Enel Energie Muntenia in order to separate distribution and supply activities. The state is planning to request for compensation for the dividends from the profits of both companies in 2012, which Enel should have granted to the state, but did not.

According to the privatization agreement, Enel was obliged to buy from the state the remaining 13.57 % stake in Enel Distributie Muntenia and Enel Energia Muntenia by mid-2012, but this never happened.

Enel has the majority 64.42 % stake in each of these two companies, while the state holds 23.57 % of the companies’ shares. The remaining 12 % of the shares is held by private investment fund Fondul Proprietatea.

In Romania, Enel is the majority owner of three electricity distribution companies (Enel Distributie Banat, Enel Distributie Dobrogea and Enel Distributie Muntenia) and two electricity supply companies (Enel Energie and Enel Energie Muntenia). The company has over 2.7 million customers in Romania, which is nearly a third of the country’s electricity market, transmits Serbia-energy.eu

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