Financial loss of the coal power plants owned by Oltenia and Hunedoara Energy Complexes (CEO and CEH) are the result of mismanagement and wasteful contracts, said on Thursday the Energy Minister, Andrei Gerea. Integrating coal mining business, with cash problems and indebted, with the business of coal-fired power generation, with the same time of trouble, made in 2012, seems to be a losing bet.

Being in a veritable black hole in terms of losses and debts, CEH recently supplemented a loan taken three years ago from CEC, extending its duration to six months, while it has to repay a lot of other money, plus the rescue aid approved by the EC and the Competition Council in two installments. Meanwhile, closure works, conservation and rehabilitation of mines this year will require around 42 million lei.

Minister Gerea still hopes to put the two energy complexes on track. “Obviously, it will require restructuring, investment, for the mine to meet environmental and safety standards and at least a minimum level of profitability. It’s what we try to do both at Oltenia Energy Complex and Hunedoara”, the government official says in press release.

Unlike CEH, CEO might have a chance to become profitable in the energy market, if restructuring plans are applied urgently.

“We came together to discuss and establish a strategy to follow for Oltenia Energy Complex. We understand the importance of coal mining and coal-fired electricity production. We are in discussions with the European Commission and we try to convince the people there to accept better conditions for coal. We hope to get another approach, because, from our point of view this is clearly about energy security, and the role of coal cannot be questioned”, said Andrei Gerea while visiting Motru mine, quoted by Agerpres.

This summer’s weather brings to the fore the safety energy gives to the system and to consumers, Gerea said.

“The current situation requires the need to ensure a balanced energy mix, which is why we insisted on finding solutions to maintain activity in mining areas. The production of hydroelectricity has decreased significantly in recent years. The flow of Danube and rivers across the country is down; we have a drop in wind energy production too. According to ANM forecasts, this period with no wind and low rainfall may be extended. In this context, we stick with nuclear and coal power. It becomes obvious that we must make efforts to maintain mining activity that gives us the guarantee of a balanced system so that Romania’s energy security is not affected. In such moments I think everyone understand the importance of coal not only for our country but for this part of Europe”, said the Minister of Energy.