Biggest Romanian independent power trader asks for insolvency

Romania's biggest independent energy supplier (and trader), Getica 95, filed for insolvency accusing "acute" cash flow problems and asking for protection under the procedure, Economica.net reported.

"We are simply in an acute lack of liquidity, and we demand the protection of the state," stated Viorel Tudose, the company's owner.

According to Tudose, the situation is not so difficult such as to force the company to terminate supply contracts, but the withdrawal of the financiers, on top of the deteriorating collection rate, forced the company to resort to insolvency protection, he explained.

He did not elaborate about the "financiers" withdrawing their credit lines, a key issue in the context of the market regulator officials commenting about the risky policies of the energy suppliers that failed to contract in advance, taking short positions that might cost them as the prices on the spot market are surging.

Another point of interest is whether the other major independent power supplier, Tinmar, is doing better than Getica 95.

The two suppliers, Getica and Tinmar, are the sole independent players on a market dominated by (most of them privatised) incumbent players that are de facto vertically integrated (despite all the formal unbundling procedures they were subject to) and enjoy robust financial support from parent groups.

Getica 95 is the biggest independent electricity supplier (9.9% market share in January, second only to Electrica Furnizare) and the biggest supplier on the free market (12.15% market share in January).

Getica 95 won tenders organised by big public institutions and state-owned companies, such as Metrorex, the operator of the Bucharest subway network.

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