The Oltenia Energy Complex ended last year in red due to the high carbon dioxide emissions; on the other hand, the 2% tax on turnover will not significantly affect the company this year, said Sorin Boza, general manager of the company.
“The European Commission estimated at the beginning of 2018 a price of €8 per emission certificate, an estimate based on which we have built our budget. The price has reached €22. The difference led to a huge financial loss that exceeds the positive operating result and, on the whole, we are in red”, said CE Oltenia official, quoted by Agerpres.
For this year, the company is considering internalizing the cost of carbon emissions in the energy production price.
Asked if this would mean an increase in the price for electricity, Boza said: “Our contribution to national generation is 20%. Suppliers will make a basket of energy from other producers, so the effect will be diluted and, in the end, it will not lead to an increase in energy price”.
Regarding the 2% of the company’s turnover contribution to the National Regulatory Authority, based on Government Emergency Ordinance 114/2018, Boza said that this would amount to about 60 million lei for CE Oltenia.
He was also asked if there is a risk that this contribution could lead to bankruptcy of the company, as some energy market analysts estimate. “We have introduced this contribution into the budget and it will not significantly affect us.” There is no question of bankruptcy. “By comparison, the cost of emission allowances is about 1.3 billion lei per year”, the head of the energy producer said.
CE Oltenia is facing these days a miners strike that led to cessation of activity in all lignite quarries, but the company’s management claims that stocks are enough for a week.
In turn, Doru Vișan, state secretary at the Ministry of Energy, said Monday, at the end of a meeting with syndicate leaders on strike, that the action is illegal at the moment, and company employees will receive vacation vouchers from May 1 if they follow the legal steps.