Romania: High energy prices throw suppliers into bankruptcy

Prices nearly tripple in the Romanian electricity market this January has put providers under fire regardless of their size, and authorities are analyzing last month’s trades, when energy has reached 650 lei (144 euros) per Mwh, energynomics.ro reads. Two transactions with large volumes of energy are under scrutiny, as they were made at unbalanced prices, say officials of the energy regulatory body (ANRE), while the Competition Council representatives were called to assist in clarifying the situation.

“Competition Council examines the two transactions, and did not open a formal investigation,” told energynomics.ro insitution’s officials.

Although just one large trader and electricity supplier announced bankruptcy yet, three – to five companies have stopped providing for contracts in force, said Ion Lungu, the president of electricity providers’ association, AFEER.

“For now we have a sole supplier that declared insolvency, Transenergo, but lately there have been several companies that have notified their partners and hence counter-parties, that they can no longer fulfill contracts and demanded their suspension, though not termination – but this also has disastrous consequences,” said Lungu.

Although one can say that such movements put out of the market small traders suppliers, also larger firms are affected.

“It’s hard to say (that suppliers getting out of the market are) small, because the (trader) which announced its insolvency was among the top three in the market, and another one who notified its inability to fulfill contractual conditions was of a similar size – that’s the great surprise for us too, that are major suppliers who work long enough in the market that are now in major difficulty,” the AFEER president also said.

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