Sep 19 - McClatchy-Tribune Business News Formerly Knight Ridder/Tribune Business News - Ciprian Domnisoru Bucharest Daily News, Romania

Romania has registered delays in applying restructuring and privatization measures in the energy production sector, shows a letter sent in August to Minister of Economy Codrut Seres by Matthias Ruete, director general of the General Department for Energy and Transportation of the European Commission.

According to the document, the restructuring of the energy production sector has slowed in recent months. The EU official also complains in the letter that instead of applying the measures in the roadmap on energy policies for 2003-2015, the ministry ordered other restructuring studies, one of them targeting the creation of energy production companies that would cluster together hydroelectric, thermoelectric and eventually nuclear power plants. From the standpoint of the European Commission, the creation of such companies, which would include several types of power producers, is not a way to promote investment and competition in this sector. The recommendations of the EU representative target Hidroelectrica and Nuclearelectrica, the leading hydro and nuclear power producers, which, according to the EC, should maintain their present structures. Ruete sees the Turceni and Rovinari energy complexes being put up for privatization as soon as possible. The EU official also criticized the repeated delays in the privatization of the two thermoelectric plants and feels the thermal energy sector needs urgent attention, meaning closing units with high production costs and clearing significant debts. Ruete also warned that after Romania joins the EU, subsidizing inefficient power producers would not be allowed.