July 25, 2012 / 12:55 PM / 5 years ago

Romania Hidroelectrica cancels power deals-econmin

BUCHAREST, July 25 (Reuters) - Romanian state-owned power producer Hidroelectrica has cancelled most of its bilateral deals under which it sold electricity at below market prices, Economy Minister Daniel Chitoiu said on Wednesday.

Hidroelectrica, which has an installed capacity of 6,400 megawatts and is Romania's cheapest power producer, was declared insolvent last month, plagued by a previous drought and by its highly criticised contracts with a handful of companies that sell most of its output at below-market prices.

"Up until now ... the most disadvantageous contracts both for Hidroelectrica and the national economy have been denounced (cancelled) and there are 3 contracts left that are still under negotiation," Chitoiu told reporters after a government meeting.

"By the end of this month, based on negotiations, they will be denounced or renegotiated at market conditions." (Reporting by Luiza Ilie; Editing by Sam Cage; Editing by Sam Cage)

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