Hunedoara Energy Complex (CEH) has been sanctioned by the Ministry of Environment with a fine of 588 million lei (over 132 million euros) because of a delayed purchase of carbon allowances and non-compliance with the clean environment rules. During the last summer, the Romanian government and the European Commission approved a rescue aid for CEH, actually money to buy the rights to pollute, but the government has given that money with a delay of three months.

The delay was transposed into an increase in the price of allowances with over a million euros. Meanwhile, the rescue aid loan was converted into restructuring loan, but a reform plan for CEH is not still in place, although deadlines come and go. The new grievous penalty adds up to the operating and financial problems of Hunedoara unit.

“Alarm signals drawn by our union on excessive politicization of management at CEH and, worse, on economic leadership directed by party interests were not taken into account by the justice department or by the Government at large. [ ..] Obviously, the fine can be appealed because if you exceed the blame of directors who instead of putting money aside to purchase carbon certificates in turn have contributed to the party, we can speak of a guilt of Romanian Government, which needed three months to implement a decision which itself initiated it. If this government decision of April 22 would have represented for the Romanian Government a responsibility, Hunedoara Energy Complex would have, until late April, purchased those carbon allowances, as happened in the period between July 22 and the end of August, when the first installment of the rescue reached CEH”, says Petre Nica, chairman of the Mountain Union, quoted by local media.