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State aid for EC Oltenia and Tarom, in negotiations with the European Commission

19 February 2020
Cogeneration
Energynomics

The Romanian authorities are in talks with the European Commission (EC) regarding the granting of state aids to Oltenia Energy Complex, affected by the increase in prices for the emission certificates, and to the air carrier Tarom, said on Tuesday the President of the Competition Council, Bogdan Chiriţoiu.

“There are discussions taking place with the European Commission regarding the granting of state aids for the Oltenia Energy Complex, which is affected by the increase in prices for the emission certificates, and the granting of aid for Tarom.

”Tarom had a reserve of about half a billion dollars, ‘succeeded’ for ten years to lose 40-50 million regularly (each year) and, after ten years, obviously half a million dollars is over and now he demands to be saved. We argue at the European Commission that it is for the first time that Tarom has received state aid since we are members of the Union. State aid can only be granted once in ten years, it is true. So, our argument to the European Commission is that, since we joined the Union, this is the first time state aid is granted to Tarom,” said the head of the competition authority.

In Chiriţoiu’s view, granting state aid does not guarantee the future of CE Oltenia, but measures must be taken that, once it has left the restructuring program, it will function properly in the market.

Autor: Energynomics

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