Romania’s Energy Ministry has requested two controls at the local energy supplier Electrica Furnizare after receiving several notices on the purchase of green certificates carried out by the company.

The controls need to be completed by the end of this week, said Cristian Busu, state secretary in the Energy Ministry. The authorities first asked for an internal audit, but then decided to request an external control too.

Busu added that “many heads will roll” if the audits show irregularities related to the green certificate purchases. The ministry received notices on these purchases from whistleblowers from within the company.

Romanian electricity supplier Electrica Furnizare bought 1.6 million green certificates for almost EUR 60 million from companies belonging to the Portuguese group EDP Renewables between April and May this year.

The transactions were striking because of the very high volumes and the long delivery period, namely until 2019, given that the market is facing a huge surplus of green certificates and that the quota of green certificates for electricity suppliers will be reduced.

The Energy Ministry controls 49% of electricity holding Electrica, which includes electricity supplier Electrica Furnizare and three electricity distribution companies. Electrica is listed on the Bucharest Stock Exchange and London Stock Exchange.

Electrica had EUR 490 million worth of cash reserves at the end of 2015, being one of the richest companies in Romania.

editor@romania-insider.com