Competition body starts investigation on planned state energy conglomerates

The Romanian Competition Council has started an investigation on the planned set up of the two national energy companies, Electra and Hidroenergetica in order to establish their impact over the market. It is likely that the restructuring on the Romanian energy production segment will lead to the consolidation of a dominant position, according to Bogdan Chiritoiu, the head of the Romanian Competition Council. Electra will be created through the merger of Rovinari, Turceni and Craiova energy compounds with Societatea Naţională a Lignitului Oltenia (The Oltenia National Lignite Company), Nuclearelectrica, Hidroserv Râmnicu Vâlcea and Hidroelectrica's subsidiaries in Ramnicu Valcea, Sibiu and Targu Jiu. Hidroenergetica will include Hidroelectrica's other subsidiaries in Bistriţa, Buzău, Curtea de Argeş, Haţeg, Porţile de Fier, Cluj, Oradea, Sebeş, Slatina and Caransebeş, as well as Hidroserv Bistriţa, Curtea de Argeş, Sebeş, Haţeg, Cluj, Porţile de Fier and Slatina. It will also include Electrocentrale Deva, Electrocentrale Bucureşti, Compania Naţională a Huilei (The National Coal Company), the Paroşeni thermal power plant and the Termoserv Paroşeni subsidiary of Termoelectrica. The Romanian government is planning to create Electra and Hidroenergetica by July 1 this year.