Insolvent electricity supplier Getica 95 cuts power to another big customer

Getica 95, the biggest private electricity trader and supplier, currently under insolvency, notified another big customer - the municipal utility provider in Giurgiu municipality - about the termination of the supply contract, Economica.net reported.

A couple of days earlier, Getica announced its default on the contract with the company that manages the major Black Sea ports of Constanta, Mangalia and Midia.

More precisely, Getica asked for a 67% price hike to continue the deliveries. In both cases, Getica proposed the two customers to sell them electricity from the spot market (day-ahead market) plus a mark-up, instead of observing the fixed price inked in the contract signed in April: RON 247 per MWh.

The utility companies in Giurgiu can now either accept the offer of the supplier of last resort - E.ON (RON 675 per MWh) or seek another supplier on the free market (pretty cumbersome for a state-owned entity).

The insolvent supplier Getica 95 may be suspected of abusing the regulations when invoking the provisions in the insolvency law - but the state-owned Hidroelectrica did the same when declaring insolvency to get rid of contracts in favor of private traders.

Consequently, Getica may walk away with terminating inconvenient contracts and even recover from insolvency.

(Photo: Pexels)