Prime Minister Ilie Bolojan stated that in many state-owned energy companies we have performance indicators that are irrelevant. He announced that the Government must audit all mandate contracts, according to e-nergia.ro.
“Most of the energy in Romania is produced by state-owned companies and three companies – Hidroelectrica, Nuclearelectrica and the Oltenia complex – account for over 60% of production, if we also transfer the power plants in the big cities to gas, we reach over two-thirds. Any kind of improvement in the performance of these companies will be reflected in prices.
Their current managements were selected based on the ordinance on corporate governance. A group of consulting firms held competitions, and in the end, people with connections to the government sector, to the political area won. It’s not a problem, but when they get to the job, they have to do a good job.
Today, in many companies we have performance indicators that are not relevant, so if you don’t meet the indicators, you lose your mandate. If at the Oltenia Combine there had been clearer indicators, the managers would have been more interested in completing the projects.
At Romgaz, at Hidroelectrica, if the criteria had been unambiguous, the managements would have been much more interested in making investments.
We need to audit all mandate contracts, review performance indicators, which should be clear and measurable, and conclude new mandate contracts with the current management. If they perform, very well, if not, they must be replaced”, said the prime minister.
In the case of CE Oltenia, Bolojan said that the gas-fired power plants were not built, at Romgaz that the Iernut project is very much delayed, and at Hidroelectrica that it is late with the storage projects.
“Otherwise, Romania loses opportunities and important projects that the ministry, that the government wants to be carried out, that private companies want to be carried out, but it depends on what the managers of state-owned companies do, they will be delayed or lost”.