The European Commission authorised, on Wednesday 26 January, Romania’s plan to grant Complexul Energetic Oltenia SA (CE Oltenia) restructuring aid of €2.66 billion.
For Margrethe Vestager, Executive Vice-President responsible for competition policy, the restructuring plan submitted by Romania and the aid to support it “will ensure that CE Oltenia can return to long-term viability without the need of continued State aid”.
During the in-depth investigation, Romania submitted a revised restructuring plan for the company for the period 2021-2026.
The support will take the form of grants, a State guarantee on a loan, a capital injection and the conversion of loans into grants.
The restructuring plan builds on Romania’s decarbonisation plans to replace lignite-based electricity production with electricity produced from natural gas and renewables (solar and hydropower) which emit less or no CO2, which should help the company improve its environmental footprint while reducing its operating costs.
In addition, the restructuring plan will reduce costs and improve the efficiency of CE Oltenia through, among other things, organisational and management measures (e.g., improvements of processes), and financial measures (optimisation of bank loans, divestment or sales of assets). (Original version in French by Lionel Changeur)