Romanian coal and power producer CE Oltenia is close to contracting a EUR 105 million loan from a group of six banks to pay for the Greenhouse gas emissions allowance (or carbon certificates), the president of company’s managing board Sorin Boza stated.

"CE Oltenia is far from insolvency, it is a strong company, and we have no debt. On the other hand, we are confident that we will get this credit," Boza said, according to local Agerpres.

He also assured that the Government would soon pass the mechanism for the so-called capacity reserve, a system by which coal power producers will be reimbursed the costs of maintaining a capacity available at any time to be used in case of short-term power shortages. "This mechanism is implemented in all European states, and it does not constitute state aid," said the CE Oltenia official.

Furthermore, CE Oltenia and other coal-fired power producers were exempted from paying the 2% turnover tax levied to companies operating in the energy sector, under the revised emergency ordinance OUG 114/2018.

CE Oltenia is the country’s second-largest electricity producer after Hidroelectrica. The state controls the company and investment fund Fondul Proprietatea is a minority shareholder.

editor@romania-insider.com

(Photo source: Facebook / Complexul Energetic Oltenia)