EC evaluates EUR 2 bln restructuring strategy at RO coal and power group

One of Romania's biggest energy producers, the coal and power group CE Oltenia (CEO), enters the final stage of the evaluation process of the Restructuring and Decarbonization Plan as it will notify the European Commission (EC). According to the company's management, the EC expressed surprise with the lack of multi-annual contracts, a legislative barrier that Romania is expected to remove early next year, Hotnews.ro reported.

CEO's restructuring plan envisages EUR 1.33 billion grants from the national budget and EUR 771 million grants from European Union funds under the Modernization Fund - mechanism 10d, according to economy and energy minister Virgil Popescu.

CEO is the second-biggest producer of electricity in Romania, with a market share of 22%.

The group's restructuring and decarbonization plan was designed and scheduled over a period of five years, during which the company must become viable by streamlining operations and switching to renewable and less polluting energy resources.

According to the restructuring plan, the number of employees would decrease from 12,107 in 2020 to 7,179 in 2015 and 4,419 in 2030.

The company is obliged to undergo this restructuring after it benefited from a rescue aid of RON 1.2 bln (included in the EUR 1.33 bln grant requested from the national budget). Without a restructuring plan, CE Oltenia must return the rescue aid that is due at the end of November.

Under these conditions, the company and the authorities send to Brussels a restructuring plan that includes a decarbonization plan that requires significant investments in the coming years.

(Photo source: Facebook/Complexul Energetic Oltenia)