State-owned Hidroelectrica, the largest energy producer in Romania, won the final lawsuit against Swiss group Alpiq RomIndustries, one of the energy traders that had been buying energy from Hidroelectrica at prices below production costs before the company’s insolvency in 2012.

The producer denounced the damaging contracts with several energy traders in 2012, a short time after entering insolvency. As a consequence, the traders sued the power producer for terminating the contracts.

The Court of Appeal irrevocably rejected the claim made by Alpiq RomIndustries against Hidroelectrica and Euro Insol, the former judicial administrator of Hidroelectrica for terminating its contract. Hidroelectrica’s agreement with Alpiq RomIndustries was valid until the beginning of 2020.

Alpiq RomIndustries sued the power producer for the early contract termination asking for claims of EUR 88.5 million, plus a EUR 117.2 million compensation.

According to Euro Insol, Hidroelectrica’s former judicial administrator, the electricity producer lost close to EUR 100 million (RON 422 mln) from 2006 until May 2012 from selling electricity to Alpiq under market prices. “Hidroelectrica made extra revenues of RON 220 million (some EUR 50 million) from selling the electricity available after denouncing this contract, between August 2012 and December 2015,” said Remus Borza, Euro Insol manager.

Hidroelectrica managed to exit insolvency this summer after winning its lawsuits with energy traders and turning to profit. The power producer surpassed oil & gas group OMV Petrom as the most valuable company in Romania this year.

editor@romania-insider.com