Romania's biggest energy company Hidroelectrica will cancel as soon as legally possible some widely criticized ongoing contracts at prices below market value, company representatives announced earlier this week. The beneficiaries of bilateral agreements not traded by the Electricity Market Operator in Romania have received notification to cancel the contracts, wherein the state owned utility company sells energy at prices way below market value. It is part of an International Monetary Fund (IMF) led aid deal to reform state owned companies.

"The sending of the notification was approved in the Council of Directors of the Company in accordance with the provision passed by the Minister of Economy, Trade and Business Environment, following commitments made by the Romanian Government in the letter of intent and technical memorandum of understanding, signed with the International Monetary Fund, World Bank and European Commission," say company sources.

Hidroelectrica is the largest producer of electricity and system technological services in Romania. It uses renewable hydro-power and last year covered   36 percent of electricity production in Romania, achieving a record production of 19.5 TWh.

The company is owned by the Romanian state through the Ministry of Economy, Trade and Business and has approximately 5,300 employees. Hidroelectrica manages 326  hydroelectric power plants and pumping stations, which totals an installed capacity of over 6,300 MW.

Alex Camburu, alex.camburu@romania-insider.com