The Ministry of Energy has launched a broad process of streamlining and restructuring state-owned companies in the field, targeting total savings of over one billion lei, without affecting the smooth functioning of production activity and ongoing investment plans, according to a press release quoted by Agerpres.
“In the context of the need to optimize public spending generated by the provisions of Emergency Ordinance no. 156/2024 regarding some fiscal-budgetary measures in the field of public spending to substantiate the general consolidated budget for 2025, to amend and supplement some normative acts, as well as to extend some deadlines, and to increase efficiency in the energy sector, the Ministry of Energy has initiated a broad process of streamlining and restructuring state-owned companies in the field,” the press release states.
The Ministry of Energy announced, since the beginning of the year, that it would initiate a restructuring plan for state-owned companies in the energy sector, aimed at substantially reducing costs and eliminating inefficiencies, in order to ensure the long-term sustainability of these companies.
In this regard, the relevant minister, Sebastian Burduja, sent an address to the companies in the ministry’s portfolio requesting a rigorous analysis of the activity at all functional levels and the transmission to the Ministry of Energy of a Plan for streamlining expenses, which would include ways to implement reform measures and, at the same time, concrete measures to increase the revenues of the companies in the ministry’s portfolio by analyzing unproductive/non-functional assets and proposing clear solutions for their valorization and introduction into the economic circuit.
Among the most important measures are: reducing management positions by at least 30%, decreasing total salary expenses by reducing administrative staff by at least 20%, reducing expenses for goods and services by at least 20%, reducing protocol expenses and sponsorships by at least 50%, as well as stopping hiring, except in well-justified cases; reducing management positions, aiming to simplify organizational structures and eliminate some functions, with the aim of reducing bureaucracy and increasing decision-making efficiency, resulting in reducing expenses and the administrative apparatus at the level of each company; reducing total salary expenses by reducing administrative staff, without affecting productive activities, in order to streamline internal processes
“We emphasize that the people who do their job, those who are essential for the proper functioning of companies, employees in production activities (quarries, mines, thermal power plants, hydroelectric power plants, nuclear power plants, etc.) are not targeted,” the cited source states.
Other measures aim to: reduce expenses for goods and services, with all contracts concluded for the purchase of goods and services to be analyzed, with the aim of obtaining the best prices and eliminating unjustified expenses (examples: the purchase of machines, computers, consulting services that are not necessary, etc.); reduce protocol expenses and sponsorships, significantly limiting expenses for protocol events and sponsorships and allocating these resources for investments in the development of the energy sector; stopping new hiring, these being allowed only in strictly necessary situations, in which the filling of a position is essential for the proper functioning of the companies or for the development and investments of the companies.
At the moment, at the level of the Ministry of Energy, the plans of measures to streamline the expenses submitted by the state-owned companies in the energy sector are centralized and analyzed. In addition, possible restructurings and mergers between the companies in the portfolio are analyzed, such as the merger between Electrocentrale Grup and ELCEN Bucharest, the merger between the Commercial Company Institute of Scientific Research, Technological Engineering and Design of Lignite Mines in Craiova and the Oltenia Energy Complex.
“The streamlining of state-owned energy companies is an investment in the future of Romania and an opportune measure, all the more so in the current context, which requires the restoration of the fiscal-budgetary balances of our country. The Ministry of Energy, as the sole, majority or significant shareholder of the companies, has set itself the objective of real reform of the companies in its portfolio. These measures are for the benefit of these companies, and our expectation is that they will be supported by the management of the companies, but also by the social partners (unions). They are necessary to ensure the long-term viability of state-owned companies in the energy sector and to optimize the use of public resources. An important clarification for all employees of these companies and their representatives at the union level: the measures will not affect the personnel necessary for productive activities,” stated the Minister of Energy, quoted in the press release.
He emphasized that they are directly aimed at reducing the administrative apparatus and bureaucracy, with “thousands of people” employed as TESA personnel in all these companies.
“Some are competent, do their job and will continue to do so. The others will have the opportunity to find a job in the private sector, where there is a labor crisis. We have asked all companies for transparency, fair rules and meritocracy. We will monitor, through all the levers we have at our disposal as a public supervisory authority, how each company will carry out these assumed plans. By reducing costs and increasing efficiency, we strengthen the country’s energy security, ensure a more stable and competitive framework for the Romanian energy sector, contribute to economic development through investments in energy infrastructure. At the same time, I assure you that the Ministry of Energy is determined to implement these measures in a fair manner, while ensuring the continuity of existing activities, the development of new ones and the protection of employees’ interests,” Sebastian Burduja added.