Romania will give RON 3.36 billion (EUR 962.8 million) in state aid to thermal power company Termoelectrica. The Competition Council (CC) announced it had authorised this sum.
The CC has been considering this since July, when the economy ministry requested help for the company ‘s debt, as it is necessary before the power sector can be restructured.
While the EC said it would not interfere over how debts were dealt with in Romania, it expressed concern over large debt cancellations without proper restructuring measures. Romania is liberalising its energy sector for EU accession, and gradually privatising sections of its state-owned power monopoly. The most recent transaction was the IPO of TSO Transelectrica. Termoelectrica accounts for thermal generation in Romania, which accounts for around 70% of supply, has an installed capacity of 5,520 MW.
 (THE HEREN REPORTS - EDEM 10197 / 11 October 2006)