Four aluminium component factories in Romania that work for multinational aerospace groups such as Airbus, Boeing or Bombardier, controlled by the Swiss group Montana Tech Components AG, are pressed by their electricity supplier to accept paying higher prices compared to those specified in the contracts that are valid until mid-2022.

The largest independent electricity supplier Tinmar has already invoiced a bill at a price four times higher than specified in the contract and wants to impose the new price effective January 1, 2022 - or alternatively terminate the contracts, Profit.ro reported.

The market conditions have changed, therefore the price must be changed, the supplier explained briefly.

The new price asked by Tinmar is RON 1,134 per MWh compared to the RON 281 per MWh agreed by the parties under a 12-month contract in mid-2021.

Notably and for unknown reasons, Tinmar accepted to lower by 19% the price in June 2021, when the two parties renewed the contract.

Tinmar claims that it can no longer afford to deliver electricity at the price promised in the contract, indirectly admitting that it took a short position and is buying electricity on the spot market to supply electricity to its customers.

The four companies would agree to pay a higher price - but not four times higher, as asked by Tinmar.

Universal Alloy Corporation Europe (UACE) and Alu Menziken - the subsidiaries of the Swiss group Montana, sued Tinmar Energy on December 22, asking the court to declare the termination notices null and void and oblige the supplier to continue executing the contracts under the initially agreed terms, including price, until maturity , i.e. until June 30, 2022.

(Photo: Pixabay)

andrei@romania-insider.com