BUCHAREST Nov 26 Romania's insolvent
state-owned hydro power producer Hidroelectrica plans to lift a
force majeure activated earlier this year as of Dec. 1 and
pledged to fulfil all contracts, its judicial administrator said
The company had declared force majeure, a clause provided in
contracts where buyers or sellers are allowed to renege on their
commitment because of a situation that is beyond their control,
after a severe drought slashed its output.
"We will halt the clause and buyers will get contracted
power quantities," Remus Borza, Hidroelectrica's judicial
administrator, was quoted as saying by state news agency
Borza said production is estimated to be below 12 TW this
year, while the company is expected to record losses of about 70
to 80 million euros ($103.67 million). He sees output rising to
13 TW in 2013.
Hidroelectrica, which has an installed capacity of 6,400
megawatts and is Romania's cheapest power producer, was declared
insolvent in June.
($1 = 0.7717 euros)
(Reporting by Ioana Patran; editing by Radu Marinas and Jason