The Bucharest Court has decided to suspend the creation of Romania's power champion company Electra, based on a request made by Fondul Proprietatea through manager Franklin Templeton. The energy company Electra should have been created based on a decision by the shareholders of Nuclearelectrica, but the court has suspended the decision.

Franklin Templeton, fund manager of Fondul Proprietatea, expressed its opposition against the two national power champions, Electra and Hidroenergetica, saying their future profitability is uncertain and debatable. Franklin Templeton submitted two requests, one against the Complexul Enegretic Craiova and the other against Nuclearelectrica. Fondul Proprietatea is a shareholder in most of the energy companies which are planned to be included in the national energy champions.

Electra should have included Turceni, Rovinari şi Craiova, Nuclearelectrica, SH Râmnicu Vâlcea, SH Sibiu, SH Târgu Jiu, Hidroserv Râmnicu Vâlcea, Societatea Naţională a Lignitului Oltenia (SNLO).

Romania's Government was hoping to set up the two power champions by the end of 2010. The initial deadline set by the authorities was July last year, after the Romanian Competition Council has started in April last year an investigation to establish Electra and Hidroenergetica's impact over the market.

editor@romania-insider.com