BUCHAREST, Nov 26 (Reuters) - 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 on Monday.
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 Agerpres.
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 Neely)