Household consumers will be facing 35% higher electricity bills in two and a half years, with a similar figure also expected in the case of companies. The increase in electrical power prices by 2007 will take place in the context of Romania's adjustment of utility prices in line with those levied in Europe and will directly impact upon companies within industries that are high consumers of utilities, such as cement, glass and the petrochemical industry.
The price of electricity to be levied upon Romanian household consumers is likely to reach $95/MWh in 2007, as compared to about $70/MWh this year, according to data presented on Tuesday by Traian Oprea, general manager of Hidroelectrica, the largest domestic producer of electricity.
"The regulated price for power produced by Hidroelectrica stands at $12.1/MWh and might be raised to $14 in 2005, $17 in 2006, and reach $20 in 2007. Thus, the price paid by household consumers is likely to go up from $69.7/MWh at present to $94.68 in 2007," Oprea explained. He added that, within the region where power is produced in thermal stations, the regulated price might go from $45.4 to $54.8/MWh within the above-mentioned period.
Representatives of the National Authority for Electrical and Thermal Power Regulation (ANRE), which sets prices for electrical and thermal power, have not confirmed the figures put forwards by Hidroelectrica by the time of going to press.
At this moment, Hidroelectrica is the cheapest producer on the Romanian power market, the delivery price of 12 $/MWh being much lower as compared to the prices levied by the other producers operating on this market - Nuclearelectrica, Electrocentrale Bucharest, Rovinari, Turceni, where the figure stands at more than $27-28/MWh.
Hidroelectrica, accounting for 31% of the power market, for this year projects revenues revolving around 400 million dollars (13,000 billion ROL), and profits worth 36 million dollars (1,200 billion ROL).
The previous financial year ended with losses, the company being seriously hit by the heaviest drought of the last 60 years, which unleashed a crisis in the power system.
"Losses registered last year amounted to 3,600 billion ROL ($108 million). We will cover them over the next three years (including 2004), from the profits we will derive," Oprea stated. He added that about 1,200 billion ROL has already been recouped.
In line with international accounting standards, losses were even higher, standing at 155 million dollars (1,169 billion ROL), according to the company's annual report. adrian.mirsanu@zf.ro
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