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The minister of Energy goes to Brussels on Monday and Tuesday to discuss the restructuring plan for CE Oltenia

The minister of energy, Virgil Popescu has announced that he will be in Brussels on Monday and Tuesday to discuss with the European officials on the margin of the restructuring plan of the Energy Complex Oltenia (CEO).

We have assumed the support of the European Green Pact, that Green Deal and obviously we are taking steps in this direction. We are in a process of restructuring of the Energy Complex Oltenia. I will be in Brussels on Monday and Tuesday to discuss it. We want that,in Oltenia, from an energy mix relying 100% on coal to have at the end of this restructuring process coal, gas and renewable energy’ said the minister of Friday in a press release on the occasion of the campaign ‘ Green Friday’.

In December, the Romanian state notified officially the European Commission with regard to the restructuring plan of the Energy Complex Oltenia which includes offering of state aids.

On 5th February, the European Commission announced the start of a thorough investigation for the state aid for the restructuring of the company.

CE Oltenia needs the approval of the European Commission until the end of April to get the state aid which allows it to pay for the certificates for carbon dioxide emissions of last year without any penalties.

 

In the process of notification of the state aid for the restructuring in favour of CE Oltenia, as well as in the stages of clarification, there was mention of the possibility to sign bilateral contracts for sale of electricity on long term(PPA) by the company, on condition it is allowed by the legislation in power.In this sense, the company presented an action plan which could lead to the signing of contracts PPA type with consumers and suppliers, in parrarel to the process of harmonisation of the national legislation to European directives.

 

CE Oltenia started the dialogue with important banking institutions in Romania, commercial banks as well as European banking institutions to secure loans which could support the contribution of CE Oltenia to the restructuring effort. Similarly, there are discussions with the representatives of Fond Proprietatea , minority shareholder with a share of 21.5%.

 

CE Oltenia says that the price of CO2 certificates has almost doubled, from 22 euro/certificate as it was when the restructuring plan was made. The re-establishment of the viability will be reached starting with 2026 mainly due to the putting into power of the unit on natural gas.

 

 ‘The open dialogue with the European Commission will continue. CE Olteia and all shareholders included in this process are already presenting proposals and solutions for the clarification of all questions of the Commission with a view to finalising and approval of the Restructuring plan’ announced CE Oltenia  which presents itself as ‘ a strategic company in the national energy system and a producer which Romania needs on short, medium and long term’ .

 

CEO owns a share on the market of approximately 20% with crucial role in assuring continuity in electricity supply in Romania.

 

The document regarding the thorough investigation of the state aid which the Romanian state intends to offer to the Energy Complex Oltenia was made on Thursday. The European Commission requires Romania that, in term of one month since the date of the document reception to present its observations and supply information which could contribute to the evaluation of the restructuring aid.

 

 ‘The structural measures proposed until the present moment by Romania seem insufficient. In the absence of structural measures and significant behavioral ones,it is unlikely that the negative effects of the aid on competition be diminished in a satisfying way (…). Taking into consideration the preliminary evaluation above, the Commission has doubts at this point with regards to the compatibility of the restructuring plan with the main requests of the Guidelines regarding state aids for the safeguard and restructuring of non-financial entreprises in difficulty’ the document of the Commission says.

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