Insolvency request of major power supplier in Romania raises awareness over market risks

A facility extended in the context of the COVID-19 crisis seems to have contributed to the insolvency request filed by Romania’s biggest independent power supplier, Getica 95, Economica.net reported.

Under an emergency ordinance issued by the Government on May 20, last year, the energy suppliers are forbidden to discontinue deliveries even to customers with overdue bills during the state of alert. The state of alert has not been lifted yet, and many customers make use of this facility in more or less good faith.

Separately, the implications of a deeper crisis at Getica 95 are investigated. At this moment, the company confirmed that the contracts in force would be observed, and the supplies would be delivered to customers. But in case this will not be possible in the future, the residential and small-sized firms will be supplied by the supplier of last resort, which is, at this moment, another big independent supplier, Tinmar Energy.

Tinmar may accept big companies as customers, but it is not compelled and therefore depends on its capacity. If the supplier can no longer observe its contracts, the big customers of Getica 95 must seek another supplier on the market.

Given the high and rising prices on the spot market, this would be a quite costly change for the big customers in terms of the price paid for electricity.

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