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LISBON, June 6 The head of Portuguese power
company EDP-Energias de Portugal said on Tuesday he will not
resign over an investigation into agreements on liberalising the
country's electricity market, in which he has been named as a
suspect, and denied wrongdoing.
Police raided the offices of EDP, grid operator REN and the
local division of U.S. consulting firm Boston Consulting Group
on Friday in a probe of past contracts on the electricity
market, saying it suspected "crimes of active and passive
EDP CEO Antonio Mexia told journalists "no" when asked if he
intended to resign.
"There was clearly no benefit for EDP, either in 2004 or in
2007," said Mexia. "The company's management and supervisory
bodies cannot take lightly people's good names being called into
Joao Manso Neto, the head of EDP's renewables division EDPR
, as well as two directors at REN, have also
been named as suspects.
EDP chairman Eduardo Catroga told the same press conference
that EDP shareholders stood by Mexia.
Portugal's public prosecutor has said the investigation is
linked to hundreds of millions of euros of state compensation
paid to former monopoly EDP for giving up some long-term
power-purchase contracts as part of the liberalisation of the
Mexia said the European Commission had looked into the same
contracts, dating back to 2004, and decided to shelve the case.
The CEO said the contracts in question were negotiated between
Portugal's government and the European Commission.
Shares in EDP were 2.3 percent higher on Tuesday
after sliding on Monday.
(Reporting by Sergio Goncalves, writing by Axel Bugge; Editing
by Adrian Croft)