The Bucharest Court of Appeal irrevocably dismissed on Monday, March 17, the appeals made by Energy Financing Team AG and Energy Financing Team Romania against the decision of Hidroelectrica’s judiciary administrator of terminating the bilateral contracts for electricity sale, a press release informs.
Euro Insol, that has been managing the state-owned enterprise during insolvency, terminated the bilateral contracts concluded with the two companies since they generated loss of nearly 503 million lei (about 102 million euro) within 2006 – May, 2012 period.
”The two appeals have irrevocably turned in favor of Hidroelectrica two major disputes – the termination of two bilateral contracts for selling electricity and the activations of the force majeure clause, on the other hand, the decisions of the syndic judge that were squashed and sending them back for retrial concerned only procedural matters. As two judicial panels within the Court of Applea dismissed the appeals made by some energy traders, once again demonstrates the major mistake made by the judicial panel that ordered the re-opening of Hidroelectrica’s insolvency procedure”, Remus Borza, delegate of Euro Insol, said.
Also, on March 3, the Court of Appeal dismissed the appeal made by Electrocarbon concerning the activation of the force majeure clause within August and November 2012.
Hidroelectrica had 11 such contracts when initially became insolvent, the energy sold based on these contracts being underpriced, generating total loss of over 4.8 billion lei (1.1 billion euro).
As a result of terminating the contracts with Energy Financing Team AG and Energy Financing Team Romania which were effective by 2015, Euro Insol sold approximately 6.4 TWh on OPCOM, at higher prices than those set by those contracts.
Yesterday, Hidroelectrica sold on OPCOM 71.2 GWh to Fidelis Energy, the price being 188.95 lei/MWh, thus the contract amounts to almost 13.5 million lei.
For the current year, the company budgeted a production of 13.9 TWh, 95 percent of this estimated electricity production being already contracted.