Environment Energy Mining Watch SEE|Investors|Romania: Hunedoara Energy Receives First Trance of a 37.8 M EUR State Aid

Romania: Hunedoara Energy Receives First Trance of a 37.8 M EUR State Aid

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According to an Emergency Ordinance on granting Hunedoara Energy Complex (CEH) a state aid totalling RON 167 million (EUR 37.8 million), the first tranche has been paid to the state-owned electricity and heat producer, a statement by the Ministry of Energy, SMEs and Business Environment shows.

In April the European Commission approved the rescue aid for Hunedoara Energy Complex, while in return Romania has committed to submit a restructuring plan for the energy producer.
The sum from the first instalment will be used for current expenses and for purchasing deficit emission rights for greenhouse gas, in order to meet EU requirements.

A second tranche of RON 68.5 million (EUR 15.5 million) will be used to fill in the amounts needed for current expenditures to support activities for a period of six months from the grant.

Hunedoara Energy Complex is expected to present a restructuring program to be approved by the European Commission. The amounts received may not be used in the coal sector, the company assuming the obligation to separate legal mining activity from remaining activities.

CEH is the largest trader in the Jiu Valley and Hunedoara County and is also the only company that supplies heat in Deva and the Jiu Valley cities. The state aid is necessary socially, shows the press release, as business interruption would lead to a significant increase in unemployment in the area and would affect the public service of general interest represented by the production, transport, distribution and supply of heat.

source: energia.gr

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